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FY2015 Results
Keynote Template
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Q1 2016 Results update and projects under commissioning 2016 Strategy and Positioning
FY2015 Results Presentation Titolo A year of investments, scaling - - PowerPoint PPT Presentation
FY2015 Results Presentation Titolo A year of investments, scaling - - PowerPoint PPT Presentation
Annual General Meeting, Electro Power Systems S.A. FY2015 Results Presentation Titolo A year of investments, scaling up towards 2016-2017 growth 21 June 2016 Massimo Prelz Oltramonti: Chairman Carlalberto Guglielminotti: Chief Executive
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First year post-IPO market expectations delivered Technology competitive advantage verticalized and HyESS business model validated Management focus to stay ahead of trends blowing up HR commitment and tapping key strategic acquisition Clear 2016 strategy plan and positioning to drive increased shareholders value
Opening Highlights
FY 2015 Results
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Gross Sales [€mio] under IT GAAP 2014 2015
1,2 0,8
Capex and strategic investments [€mio] 2014 2015
1,4 0,022
Subsidies (other income) [k€] 2014 2015
0,3 0,8
Adjusted EBITDA [€mio] ** 2014 2015
- 2,6
- 1,5
- 67%
+ 53% +65x
FY 2015 Results
Consolidated results
* Gross Sales refer to audited EPS Italy €1.2mio revenues under Local GAAP. Consolidated Group IFRS revenues amount to €0.4mio, as approx. €0.7mio sales under IFRS have been recorded with the IAS18 “gross to net” accounting method (disclosing just the net margin and not the gross revenues) due to a IFRS treatment caused by the outsourcing of the supply. Such outsourcing was mainly due by the fact that the related purchase orders were received in 2015 before the Elvi Energy acquisition and the completion of the new manufacturing plant. ** Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, R&D related product development costs and other non recurring expenses.
0,4*
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2014 EPS Italy Revenues 2015 EPS Italy Revenues Q1 2016 Group Backlog*
3,5 1,2 0,8 2,3
+ 53% + 285%
2014-2015 Sales and Q1 2016 Backlog
* 2016 Group Backlog means invoices already issued in 2016 plus purchase orders received, or revenues already contracted or expected to be generated in 2016 based on current arrangements with customers Data in €mio.
FY 2015 Results
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Sales breakdown by final user: diversification carried-out
FY 2015
80% 20%
Telecom Operators Telco/Data Center System Integrators Current Backlog and expected 2016
40% 20% 30% 10%
Telco/Data Center System Integrators Utilities Grid operators (final user) Commercial&Industrial
FY 2015 Results
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Our main cash outlays incurred in 2015
11% 15% 8% 23% 21% 13% 10%
New facilities R&D Elvi Energy acquisition IPO costs Extraordinary Personnel costs Other Operating Expenses
euro 11,7 mio 1.2 mio 1.5 mio 2.4 mio 1.7 mio 2.6 mio 0.9 mio 1.3 mio
FY 2015 Results
Data in €mio
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Financial accounting of cash outlays
New facilities
40% 60%
Intangible assets P&L
Elvi Energy acquisition
100%
Other current assets
R&D
53% 47%
Intangible assets P&L
IPO costs
60% 40%
Equity P&L
euro 1,2 mio euro 1,5 mio euro 2,4 mio euro 2,6 mio
FY 2015 Results
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From Gross Sales to Net Income
(0,06) (0,60) (2,55) (1,35) (1,72) 0,52 (0,92) 0,27 1,17 (2,85) 0,05
GROSS NOMINAL SALES
COGS
GROSS MARGIN
Personnel costs Other operating expenses
Adjusted EBITDA
Other costs for product development
Amortization Depreciation net of Impairment Non-recurring income /expenses
Taxes & Net financial income/expenses
- adj.
NET RESULT
EBITDA
(3,15) (5.94) (10,59) (4,65)
Stock Options Net Result
OTHER INCOME
FY 2015 Results
* adj. Net Result is defined as the Restated Net Result before stock options accounting ** Legal, accounting and Certification expenses have been represented net of the non recurring income of €0.3mio for extraordinary legal settlement. Data in [€mio]
Non-recurring expenses
7% 7% 17% 68%
IPO & Roadshow Cost Manufacturing Consolidation Legal, Accounting and Certification ** R&D
1.9 mio 0.5 mio 0.2 mio 0.2 mio
P&L impact of non-recurring expenses
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31.12.2015 Proforma Net Cash *
0.82 1.41 (0,32) 8.29
Net Financial Position Elvi Energy capital injection MCM acquisition VAT receivables Proforma Net Cash
10.20 Data in €mio
FY 2015 Results
* The bridge from Net Financial Position to the Pro-forma Net Cash results from (i) the addition of the €1.4 million capital increase reserved to the former Elvi Energy shareholders and current management, which will take place in 2016 at 7.15€ per share, and (ii) the addition of €0.82 millions of 2015 extraordinary VAT receivables that will be set-off starting from the second half of 2016.
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FY2015 Results
Keynote Template
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Q1 2016 Results update and projects under commissioning 2016 Strategy and Positioning
Index of Contents
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Positioning: hybrid solutions represent the core of any storage need
CAES:
Compressed Air Energy Storage
HPS:
Hydro Pumping Storage
Minutes - 2h 2 -7h 7-24h Days Seasons Autonomy / Discharge time
Rated power
ENERGY INTENSIVE
1 kW 5 kW 10 kW 50 kW 100 kW 500 kW 1 MW 100 MW up to 500 MW and beyond Traditional Batteries:
- Lead-acid
- Pb-Open Valve
- Pb-Gel
Battery Energy Storage Systems (BESS):
- Lithium-ion batteries / Li-ion titanate
- REDOX / Flow Batteries / flywheels
- Advanced Lead-acid / NaS / NaCl
SMALL-SCALE SYSTEMS GRID-SCALE SYSTEMS
Diesel Generators (DIESEL) & gas power plants (CCGT) in modern grid systems or
Hydrogen Storage (H2 STORAGE)
POWER INTENSIVE
CAPACITY * FLEXIBILITY HYBRID STORAGE a unique system integration of: ❑ BESS for grid flexibility ❑ H2 STORAGE or DIESEL for grid capacity
* Pure Energy Applications (which cannot be classified as a flexibility or capacity application), aimed at regularly time-shift energy, have not been represented as not profitable in current market environment.
2016 Strategy and Positioning
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What “Vertically Integrated Energy Storage Company” stands for
Storage suppliers Specialised PCS manufacturers Integrated storage technology vendors Utilities Typical types of players 3rd party investor EPC company Project activity Cell provider Storage provider Power electronics System integration Grid equipment Engineering & construction Project
- peration
Ownership T&D manufacturers and larger, more integrated PCS manufacturers Cell manufacturers System suppliers Developer Developer Specialist integrators Specialist integrators
Main industrial shareholder and technology partner
2016 Strategy and Positioning
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What we do as a “Vertically Integrated Energy Storage Company”
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Grid Support
Hydrogen Storage Module Diesel Generator Gas Turbines Battery Module Wind turbine Solar PV module
MASTER CONTROLLER SCADA
Supervisory Control And Data Acquisition
Off-Grid Power generation
Battery Management System
BMS
Power Conversion System
PCS
Solar inverter Windmill inverter
Distributed Smart Storage
Electricity Bills reduction through peak shaving, demand response, energy efficiency and energy conversion optimisation
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Diesel Replacement for C&I isolated sites mining, oil companies and local communities Flexibility Services: Primary reserve, frequency regulation Capacity Services: Non-spinning reserve, Secondary & Tertiary Reserve
2 2 1 1 1 1 1 2 2 2 2 3 3
Power Generation Flexibility Capacity
1
2016 Strategy and Positioning
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Diesel consumptions and emissions are therefore reduced up to 70%, enabling a payback between 3 and 5 years and IRR up to 25%. Any Hybrid Power Plant can be extended in size modularly with additional renewables (to increase power), and upgraded with the Hydrogen Storage Module. Plugging in a Hybrid Power Plant the Hydrogen Storage Module is an additional investment, which enable complete avoidance of diesel fuel and a further reduction
- f the electricity bill.
Off-grid focus: a two-step business model
Hydrogen Storage Module
STEP 1 STEP 2 MICROGRID STORAGE ENABLED HYDROGEN MODULE
The customer replaces current diesel generators with a Hybrid Power Plant: electronics, renewables and storage to lower the electricity bill (17% in Somalia).
2 3 4 1
Hybrid Power Plant Microgrid composed by RES + HyESS (Hybrid Energy Storage Systems)
2016 Strategy and Positioning
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Grid Support Distributed Smart Storage Off-Grid power generation
We provide grid operators and renewable energy players with integrated storage solutions to master the intermittency of renewables, and address the burgeoning demand for primary, secondary and tertiary reserve, reactive power and black-start capabilities, at a lower cost for consumers, cutting electricity bills. We enable renewables as a reliable and affordable stand- alone power source in emerging markets, displacing diesel and oil- fired generation. We foster a bottom-up, decentralized model of greenfield electrification, providing clean energy 24/7 at cost lower than diesel generation, the only alternative in such areas.
Our Markets: focus on profitable and unsubsidized business verticals
With behind-the-meter storage, we compress energy bills, by peak- shaving the consumption profile of commercial and industrial users,
- ptimizing the utilization of distributed
generation, enabling participation in demand response schemes, and delivering sustainable back-up power.
Off-Grid power generation
20% 10% 70%
Off-Grid power generation Distributed Smart Storage Grid Support
EPS Resources allocation and long term growth expectations
Building credentials and reputation Targeting 35% of the global population which is under- electrified Regulation & Market Design driven
2016 Strategy and Positioning
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FY2015 Results
Keynote Template
01 02 03
Q1 2016 Results update and projects under commissioning 2016 Strategy and Positioning
Index of Contents
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Revenues growth in line with management expectations Pipeline conversion on right track to achieve 2016 revenues expectations Burn rate under control, Q1 impacted by R&D investments, MCM acquisition and reduction of TWC exposure Dialogue with financial institutions to support 2016-2017 growth already started
Q1 2016 Highlights
Q1 2016 Results and Projects
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Q1 Revenues under IFRS* [€mio]
Q1 2015 Q1 2016
1,1 0,1
Net Working Capital exposure [€ mio]
31.12.2015 31.03.2016
0,2 0,96
- 79%
+ 807%
Consolidated results
* Unaudited
Q1 2016 Results and Projects
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Q1 2016 Revenues 31.3.2016 Backlog New Orders 16.05.2016 Backlog * 2016 Revenues in the bag
3,45 3,45 3,45 2,3 1,1 1.15
Backlog recognition and 2016 revenues in the bag
* 16.05.2016 Backlog means (i) invoices already issued in 2016 but not yet recorded as “Revenues” in Q1, plus (ii) purchase orders received as at the date hereof, plus (iii) revenues already contracted or expected to be generated in 2016 based on current arrangements with customers Data in €mio.
1.2 2.35
2.3mio Backlog announced with the FY2015 results release
1.1
Q1 Revenues
2.35
current Backlog
1.1 3.45mio
Q1 2016 Results and Projects
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Revenues breakdown by final user: diversification carried-out
FY 2015
80% 20%
Telecom Operators Telco/Data Center System Integrators Q1 Revenues and current Backlog
40% 20% 30% 10%
Telco/Data Center System Integrators Utilities Grid operators (final user) Commercial&Industrial
Q1 2016 Results and Projects
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Net Financial Position reconciliation
(0.32) (1.45) 8.29
Net Financial Position 31.12.2015 Q1 Burn rate MCM acquisition R&D investments Net Financial Position 31.3.2016
(0.76)
Operating Working capital
(0.4) 5.36
Q1 2016 Results and Projects
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2016 Projects: the driver of our backlog
Q1 2016 Results and Projects
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Group installed base and credentials
Flexibility
Control and system integration
- f any BESS
Capacity
Hybrid Storage
21 countries
Covered by our installations
100,000+
People powered by our hybrid solutions
44.3 MWh
Aggregated energy storage installed or under commissioning
21.1 MW
Aggregate power
- utput installed or
under commissioning EPS Group’s companies (Elvi Energy, MCM, and Electro Power Systems) have strong references and developed systems, projects and analysis for:
Q1 2016 Results and Projects
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Storage: 1MVA/2MWh BESS Master Controller
Black Start Function 200,000h development
Grid Support System:
(Li-ion titanate technology)
Power Conversion: 1MVA
- No. 4 C-BESS 250kW,
DROOP Control Technology
Smart MV Switchgear
Terna Plus is engaged in the development and implementation of storage system projects for the transmission grid. This program consists of two macro-projects (“Energy intensive” and “Power intensive”) and plans the installation of different types of systems with technological features that meet the needs of functions and services to be provided.
Final User: Customer:
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Q1 2016 Results and Projects
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PV: 1MW Wind: 450kW Storage: 700kWh DG: 3.25MW Electricity Bill reduction: 17%
Diesel reduction: 25%
People: 100,000 Hybrid Power Plant: Peak Load: 3.5MW Power Distribution Board
MV distribution to end-user
Customer:
The Hybrid Power Plant, awarded by NECSOM (National Electric Corporation
- f Somalia) involved the engineering, supply and installation of a renewable
and storage turnkey solution that allows the reduction of diesel consumption by more than 2,000 litres per day. The Hybrid Power Plant serves a 3.5MW load, and is expected to be shortly further extended with 450kW of wind energy, covering with renewables and storage more than 25% of the energy need of the city. Situated in North-East
- f Somalia, Garowe is the administrative capital of the autonomous Puntland
region and a fast-growing city, which has also evolved into a local media and cultural hub.
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Q1 2016 Results and Projects
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PV: 2MW Storage: 282kWh Diesel reduction: 275,000 liter/year Hybrid Power Plant: CO2 emissions reduction: 165 tonnes / year. Customer: Luxury resort in the Maldives
The Hybrid Power Plant powers a 2MW resort and lodges completely off- grid; the power plant is mainly composed by solar panels, energy storage system, advanced control system, power centre and is a real power plant fully remotely controlled. Everything has been fractionated to minimize the footprint, thus exploiting the roofs of the various buildings of the resort with the PV panels. Located in one of the 1,190 Maldives islands, the Hybrid Power Plant will save approximately 275,000 litres of diesel each year, while cutting greenhouse gas emissions by around 165 CO2 tonnes per year.
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Q1 2016 Results and Projects
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Hybrid Power Plant: PV: 3MW Wind: 2MW Storage: 1MW/250kWh DG: 6MW Demand: 3MW
(average load)
Power Conversion: 3MW
(peak load)
Diesel reduction: 70% Customer:
Many remote Australian communities relying on diesel generators, expensive to run and vulnerable to the volatility of fuel prices. Prior to the installation of the Hybrid Power Plant this iconic mining town in South Australia was entirely relying on diesel generation. The Hybrid Power Plant, whose construction will be carried out starting from September 2016, will provide the mining site and its below-ground residences, with approximately 70% renewable energy over the 20 year life of the project.
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Q1 2016 Results and Projects
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Customer:
29 Where: Flinders Island (Tasmania) Application: Off-grid-power generation via 500kVA/ 300kWh Hybrid Power Plant End User: Hydro Tasmania community
Partner:
Where: Tilos (Greece) Application: On-grid grid support and Off-grid- power generation via 1MW/2MWh Hybrid Power Plant End User: Local Transmission System Operator
Q1 2016 Results and Projects
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Closing remarks
Q1 2016 results: + 800% sales growth Pipeline conversion on right track to achieve 2016 revenues expectations
01
Flagship installations in Africa, Australia, and Asia Pacific. 2% of the global market share 21.1MW / 44.3MWh credentials 100,000 off-grid end-users
02
Sole vertically integrated player in the energy storage space 125 patents / 500 trade secrets 10years R&D 20.8mio operational hours Unique hybrid solutions already under installation, ready for hydrogen upgrade
03
25% PhD/MBA - 48% engineers Unique team of technology and energy entrepreneurs Strong corporate governance and internal control New manufacturing plant already
- perational
04
01 Expectations delivered 02 04 03 Solid credentials and positioning plus strong pipeline Technology leadership and unique proposition Solid Management and strong governance
We can now leverage on solid credentials
Q1 2016 Results and Projects
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