Final Results

ITM Power (AIM: ITM), the energy storage and clean fuel company is pleased to announce its final results for the year ended 30 April 2019. What follows is a preliminary announcement; the full annual report and financial statements will be available shortly.

HIGHLIGHTS

FINANCIAL:

• Total Revenue & Grant Funding of £17.5m (2018: £14.1m) up 25%, comprising:
  • Sales revenue - £4.6m (2018: £3.3m) up 40%
  • Grant income recognised on the income statement - £7.2m (2018: £4.1m) up 75%
  • Grant income recognised on the balance sheet - £5.7m (2018: £6.7m), down 14%
  • Loss from operations £9.3m (2018: £6.5m) increased 44%, EBITDA loss of £7.5m (2018: £4.8m) increased 56% as the Group invests to significantly scale up facilities, resources and production capacity
  • Available cash balance of £5.2m at year-end (2018: £20.4m)
  • £52m minimum equity fundraising announced today, subject to shareholder approval, including a:
  • £38m cornerstone investment from new strategic partner Linde Engineering (part of Linde AG)
  • £14m firm placing with certain existing and new institutional investors
  • Open offer of up to approximately £6.8m

COMMERCIAL:

• Formation of worldwide joint venture to market, tender and sell green electrolytic hydrogen projects with Linde Engineering - part of Linde AG, a world leading supplier of industrial, process and specialty gases
• Agreement to lease new premises in Sheffield for global manufacturing headquarters with an electrolyser manufacturing capacity of up to 1GW (1,000MW) per annum, the largest in the world
• Non-contracted tender opportunity pipeline increased to over £379m (September 2017: £200m), illustrating the growth in the global hydrogen economy
• German presence expanded, first sales in Australia

CORPORATE:

• Martin Green appointed as non-executive director, joining the board on 16 September 2019
• Lord Roger Freeman announces resignation as non-executive director with effect from the publication of these financial results
• Appointment of Nicola Ham Edmonds, Head of Legal, as Company Secretary on 16 September 2019

Clean Fuel

• 15 wholly owned Hydrogen Refuelling Station (HRS) assets in ITM Power’s portfolio:
• eight fully open to the public, seven in various stages of construction
• Awarded further £1.8m by OLEV to deliver another refuelling station, part of a larger grant to put 57 new hydrogen cars on the road in the next 12 months.
• UK refuelling collaboration agreement with Shell extended to 2024 and to all hydrogen vehicle types
• Hydrogen fuel contracts now 33 in total (2018: 20) with fuel sales increased to 32 tonnes for the period (2018: 16 tonnes), up 100%
• Two bus refuelling stations – Birmingham and Pau in France – due to open this financial year

Power-to-Gas

• Committee on Climate Change recommended a central role for green hydrogen based power storage in its report to the UK government
• Official opening of BIG HIT (Building Innovative Green Hydrogen Systems in an Isolated Territory) in Orkney provided a reference blueprint for renewable hydrogen deployment for island systems
• Undertaking a feasibility study (Centurion) to deploy 100MW Power-to-Gas (P2G) energy storage in Cheshire
• Part of consortium awarded £14.9m over four years by Ofgem to fund two decarbonised domestic heating trials in the north of England (HyDeploy and HyDeploy 2) in the largest gas Network Innovation Competition (NIC) project ever and the first to inject green hydrogen into a UK gas grid

Industrial

• EU 10MW refinery project with Shell in Germany is on schedule and progressing well
• Opportunity pipeline contains a growing number of industrial projects as organisations seek to cut their carbon footprint – focus is on refineries and steel making
• Won BEIS competition to demonstrate delivery of bulk, low-cost and zero carbon hydrogen through gigawatt scale PEM electrolysers in partnership with Orsted

Graham Cooley, CEO, commented, “ITM Power continues to deliver strong growth with revenues up 25% year on year. The Group has benefited from the lessons learned in deploying units above 1MW for the first time, including in harsh environments and difficult operating conditions. This delivers significant competitive advantage for future deployments as we scale up and standardise our products. We’ve also been learning how to maximise value from our growing portfolio of revenue generating assets in the shape of the first real hydrogen refuelling network in the UK.”

Roger Putnam, Chairman, added, “I am pleased to report our plans for expansion of staff and production capacity are on track. The next year will be a period in which we transition to our much larger new factory. We welcome the Committee for Climate Change report’s aspirations to make the UK zero emissions by 2050 and its recognition that PEM electrolysers will be an integral part of the new energy mix. As always, I would like to thank our staff for another year of hard work and enthusiastic dedication to our business ambition to help decarbonise the world’s energy markets.”

For further information please visit www.itm-power.com or contact:

ITM Power plc
+44 (0)114 244 5111
Graham Cooley, CEO

Investec Bank plc (Nominated Adviser and Broker)
+44 (0)20 7597 5970
Jeremy Ellis / Chris Sim

Tavistock (Financial PR and IR)
+44 (0)20 7920 3150
Simon Hudson / Nick Elwes / Barney Hayward

About ITM Power plc

ITM Power plc designs and manufactures integrated hydrogen energy systems for grid balancing, energy storage and the production of green hydrogen for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. In September 2017, the Company announced the completion of a £29.4m working capital fundraise. The Company signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015, which was extended in May 2019 to include buses, trucks, trains and ships, and subsequently a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. The Company entered into a Strategic Partnership Agreement with Sumitomo Corporation in July 2018 for the development of multi-megawatt projects in Japan. Additional customers and partners include Ørsted, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others.