Half Year Results for the Period ended 31 October 2019

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six month period ended 31 October 2019. Comparable figures, where stated, refer to the corresponding period in 2018 unless otherwise indicated.

Commercial:

• Formation of a Joint Venture with Linde Engineering, ITM Linde Electrolysis GmbH (“ILE”) focusing on delivering green hydrogen to large scale industrial projects
• Transformative £58.8m fundraise to:
  • facilitate move to Bessemer park
  • fund the continuing development of 5MW electrolyser module o initially fund the Joint Venture, ILE
  • to provide balance sheet strength and flexibility

Operational:

• Lease for new 1GW factory signed, with Principal Contractor appointed for fitout on a 30 week programme
• US Business development MoU with Iwatani Corporation America
• As of today, the total backlog stands at £42.4m (2018: £33.6m) with £16.3m (2018: £23.2m) of projects under contract and a further £26.1m (2018: £10.4m) in the final stages of negotiation.
• The qualified tender opportunity pipeline is now over £248m (2018: £240m), representing 37 projects with an average size of £6.7m.

Financial:

• Total income of £3.8m (£5.0m), down 24%, comprising:
  • Revenue of £2.4m (£1.2m), up 100%
  • Grant income plus grants receivable for capital projects of £1.4m (£3.8m), down 79%
• Loss from operations £9.8m (£5.3m), increased by 85%
• EBITDA Loss of £8.3m, (£4.5m), increased by 84%
• Cash balance (excluding restricted balances) of £56.9m (£15.6m) at period end
• Cash burn (excluding fundraise) of £6.2m (£4.8m), up 29%
• Net working capital of £9.0m (£9.4m), down 4%

Corporate:

• Sir Roger Bone steps up to Chairman following four years on the board
• Martin Green joins the board as non-executive director
• Juergen Nowicki appointed non-executive director, nominated by Linde
• Appointment of Andreas Rupieper as MD of ITM Linde Electrolysis GmbH
• Nicola Ham Edmonds appointed Company Secretary
• Prof. Roger Putnam and Lord Roger Freeman retire from the board

Graham Cooley, CEO, commented: “The formation of the Joint Venture with Linde and the strategic investment that accompanied it is transformative for ITM Power. The deal allows ITM Power to concentrate on its core competence of developing and manufacturing electrolysis equipment. The Company is now able to offer a full turnkey solution at industrial scale with the EPC competence of a world leader in the hydrogen industry. The opportunity to bid up to 1GW per annum of electrolysis equipment from Bessemer Park gives the Company a powerful cost reduction trajectory. I am confident that ITM Power and our partner Linde have a world class offering.”

Roger Bone, added: “I am delighted to take over from Roger Putnam as chairman of ITM Power and to oversee the integration of the Company’s activities with Linde Engineering into a successful joint venture. I thank Roger for his contribution and commitment to the Company during his tenure and look forward to further developing our governance to drive ITM Power forward.”

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

ITM Power plc
+44 (0)114 244 5111
Graham Cooley / Andy Allen

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

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

About ITM Power plc:
ITM Power plc manufactures integrated hydrogen energy solutions 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 October 2019, the Company announced the completion of a £58.8 million fundraise, including a subscription by Linde of £38 million, together with the formation of a joint-venture with Linde to focus on delivering green hydrogen to large scale industrial projects worldwide. ITM Power 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 in January 2018 a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. ITM Power announced the lease of the world’s largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum in July 2019. Customers and partners include Sumitomo, Ørsted, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai and Anglo American among others.