ITM Power Plc

Good morning and welcome to the IT Empower PLC investor presentation. Throughout this recorded meeting, investors will be in listen-only mode. Questions can be submitted at any time by the Q&A tab situated in the right-hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the team at IT Empower PLC.

This year IDM has turned 25 and I am proud that we can present you a strong set of results, reflecting continued growth, commercial momentum and disciplined capital management. Over the past 25 years we have evolved into a leader in electrolyser technology. We are known for high performing and reliable solutions with our stack technology at the very core of our success. In March this year the Financial Times has confirmed us as the fastest growing manufacturing company in the UK. Simon Born, Amy Gray and I will give you a comprehensive update today, with special emphasis on real-world projects and actual initiated product performance data, a level of transparency you will rarely see in our industry. We will also dedicate time to Kronos, our next step generation, and Hydroponics, our recently launched business model. Before going into more detail, let me provide you an overview. First, on the market and competition. Our pipeline of project opportunities is healthy and growing, and we are securing more than just our fair share in the market. Whether in refineries transitioning to green hydrogen or energy companies optimizing excess renewable power generation, we are positioned as a key player. With customers' FIDs taking time to mature, competitive pressure has increased and market consolidation is underway. This is a phase we expected and we are very careful. Governments continue to play an important role and regulatory frameworks remain favorable. Unchanged, Germany is the single most active market with significant funding already flowing into projects, pipeline and storage infrastructure and wider decarbonization. Net zero by 2045 is now enshrined in the German constitution, and the release of the country's debt break has unlocked 500 billion euros of planned infrastructure investments. In contrast to the US, which has unsurprisingly slowed down significantly, the UK is finally gaining traction. With first FIDs now in sight, the hydrogen integration round one selected projects are coming to life. Haar 2 has shortlisted 27 projects, together seven times the capacity of Haar 1. The only large H2 project which announced supplier selection so far is Unifor's 120 MW Humber project, and it came our way. We are excited to support our customers to make their projects in our home market a special success. I don't want to go into too much region detail here, but Europe will continue to be the most important region for our products for the time being. The implementation of RET3 is destined to stimulate demand even further. Operational excellence is fundamental to our strategy, be it for highest competitiveness in the current market environment, for customer confidence or for our path to profitability. Our focused and disciplined approach is best explained by the improvement of our factory acceptance task pass rate, which we were able to improve from below 50% to now 99% over the last 200 days produced. This reflects strong processes, efficiency, product reliability and our capability to execute effectively. Underpinned by continuous technological innovation, we are agile and responsive to the evolving needs of our customers in a dynamic global environment. Evidence for that are the launches of our products Poseidon and Neptune 5, which have landed particularly well with customers and which are generating commercial traction and success. Having retained full ownership of our core science and manufacturing processes, we do not only keep the technological edge, we maximize value-add and ensure supply chain resilience. This plays to our own advantage, even in times of global tariff uncertainty and supply chain disturbances as recently seen in the market. With our comprehensive product portfolio, proven track record of delivery and especially with our growing number of reference plans, ITM is well positioned. In particular, reference plans and in-field product performance data have become a key differentiator and are conducive to customer confidence. Thanks to the successful delivery and operation of flagship products, we offer customers proven technology, underscoring our credibility with efficiency and reliability data from real commercial plants. Simon Born will talk more about this point later. Now, I don't want to take the full financial part away, but it's worth summarizing that our strong set of results has confirmed our robust financial position. With revenue up 50% year-on-year or 400% over two years, and with 207 million pounds of cash in the bank as of April, our financial performance and balance sheet are seen as clear competitive advantages by our customers. This also helps the bankability of projects. Our contract backlog has grown even quicker than revenue, which I will talk about in more detail on the next slide. The outlook for green hydrogen remains strong. The energy transition is no longer just about decarbonisation, but also about energy security and economic resilience. While early excitement led to unrealistic expectations, a cost correction was inevitable. Rather than signalling failure, these market adjustments reflect a healthy maturation process. The customer landscape, technologies and supply chains are evolving, weeding out weaker projects and paving the way for a more resilient, commercially viable hydrogen market. In this environment, operational agility and financial discipline are key to remain strategically positioned to capitalize on emerging opportunities. One of these opportunities is Hydropulse, our newly launched built-on operate business model, which I will shed more light on later in the presentation. Our strategic priorities have remained valid. We will continue to innovate and deliver best-in-class electrolysers, scale our operations profitably to meet the growing demand, and consciously expand our global presence to grow market reach, pursuing an asset-light approach. If order intake grows quicker than revenue, then the contract backlog is increasing. In turn, a growing contract backlog is therefore an important leading indicator of a sustainable business model. Over the past two years IDM sales has grown by a staggering 400% and still our contract backlog has easily outpaced that and almost doubled during the year. Due to record order intake from the Refine2 100 MW project, 40 MW of Neptune 5 contracts, feed study and after sales contracts, at the end of April this year our backlog stood at 145 million pounds. Also post financial year end this momentum did continue. Since then, we signed another Neptune 5 contract with Westnets in Germany, a Neptune 2 contract with a Spanish cement producer, a 120 MW feed contract with Unipa, and more. We expect our contract backlog to grow further during this financial year. One part of our contract backlog is this great project in Norway for our customer, La Francaise de l'Energie, short FDE, with whom we signed the contract in this calendar year. Located directly at the coast, the H2 Hub ACTA project is consisting of two phases. Phase 1 comprises 20 MW, for which we are proud that FDE chose our Neptune 5 electrolysers. The planned second phase aims to add another 40 MW of capacity at a later stage. Phase 1 is already in execution, currently in the so-called detail engineering phase. For IDM, this is the first time we are integrating four Neptune 5 containers into one overall plant. thereby demonstrating high flexibility to configure the plant to site-specific requirements. Given the harsh marine environment, we need special corrosion protection and opted for water instead of air cooling. The Neptune 5 containers for this project will be manufactured in our new adjacent manufacturing workshop in Sheffield. No longer following a static build methodology, but one where the containers are moving through different build stations for higher throughput. something you would normally expect in a car manufacturing environment. We are working very closely with our customer FTE to enable our joint ambitious timeline. Commissioning is planned for the end of 2026, after which FTE will supply green fuels for the shipping industry. Another very important project we are currently delivering is the RW Lingen 2x100 MW plant. This time I'm letting our customers and partners speak for themselves with their own LinkedIn posts. The world's biggest PEM plant in execution is well on track, with now already 81 out of 150 stacks installed. The first 100 MW are planned to go live still this calendar year. The Lingen plant will supply green hydrogen via pipeline to the total refinery in Lorna. I have to say that I am particularly proud about Sopna's positive confirmation that we are a steady and reliable partner for RWE. This is the kind of credible customer validation which goes a long way with prospective other customers. And, of course, we couldn't be more proud and excited to be entrusted to deliver this XXL project together with our strategic partner, Lynda. The many real-world learnings we are gathering together here are positioning us strongly for future joint projects.

Thank you, Dennis. I've previously discussed the performance of our Trident Stack platform in this forum before and claimed it to be the most advanced on the market. ITM has extensive testing facilities and many years of lab data, but it's real-world field data that customers want to hear about. This is because customers need to have confidence that the performance claimed by the OEM is representative of what they'll actually deliver. They also need to know that the rate of performance degradation is slow and working with the business model. If stacks need more energy to produce a given quantity of hydrogen, the cost of generation increases. Efficiency degradation is an important concern of customers, and many competitors are struggling with this. Not least because there are few large-scale PEM plants in operation using current stack technology, even fewer that have been operating for several years. ITM has stacks deployed at numerous sites across Europe, Australia and Asia. The current Trident stack platform has acquired over 125,000 cumulative hours of operation in the field. and this data is being routinely used to monitor performance and performance degradation rates. Today I want to book the trend of the industry and share some of this analysis with you. I will use stacked data from the 10MW Shell Refine One project, a refining application. This is a plant that has seen variable and intermittent operation, a very challenging profile and one only possible with PEM technology. The graph on the top right shows the recorded profile for one of the five modules that make up the plant, operating between 30 and 100% load. To assess performance degradation, I've looked at full load efficiency during the months of May 2024 and May 2025. Between those two periods, the plant accumulated approximately 30,000 stack operating hours, and an average of 1200 pressure cycles and 400 power cycles for each stack in the plant. Efficiency is measured in kilowatt hours per kilogram. The fewer kilowatt hours required to generate a kilogram of hydrogen, the higher the efficiency. Degradation is described in percent per thousand operating hours. During the 12-month period, the stacks achieved an average performance over the variable load profile of less than 49 kWh per kilogram. This is real-world market-beating efficiency. And the performance degradation rate was 0.09% per 1,000 operating hours. To provide some benchmarking, The EU 2030 target for degradation is 0.12% per thousand hours for PEM and 0.1% per thousand hours for alkaline technologies. This field data from IGM's Trident stack beats both of these targets. This is highlighted in the graph on the bottom right. It must be said that this should still be considered early data, however it's being added to rapidly and becoming tremendously valuable in strengthening customer confidence. I'd also like to express my thanks to Shell for continuing to allow partners and prospective customers to view the plant in Vesely. This takes us to another example deployment of Trident's Fax, this time in partnership with Linder Engineering, who designed and supplied the balancer plant. This plant is located at a Yara facility in Portsmouth, Norway. It has a capacity of 24 megawatts and is used to generate hydrogen for the production of green ammonia as fertilizer. To date, this plant has accumulated over 70,000 stack operating hours and has produced over 500 tons of green hydrogen already. Another example of a plant that's being operated commercially in a real-world industrial setting. This together with field data from several other plants is contributing valuable performance data that are starting to differentiate ITM. A rapidly growing number of industrial scale commercial reference plants is a tangible competitive advantage. My final slide is a brief update on our next generation stack platform, Kronos, which is currently in development. In short, Kronos will have a larger capacity, lower cost and higher performance. It will support large-scale projects while also providing a route to refresh the full product range. Kronos builds on the technology that we've proven via Trident. It applies all of the lessons learned from manufacture, project execution and field operations. The design squeezes much more electrolysis into a smaller footprint, dramatically increasing power density. It's also future-proofed to not only take advantage of the best technology today, but also the improvements that are coming through our rich technology pipeline. We've progressed through validation of new features and processes and are well on track with testing. While not publishing a specification until validation is completed, I can tell you that part count is reduced by approximately 50% ceiling components have been reduced by approximately 70% and power density has more than doubled to over 2.5 MW per square meter. We're genuinely excited about what's to come. The validation process continues at pace and I look forward to updating the market on progress in the near future.