AGM PRESENTATION SHEFFIELD, 12 SEPT 2012

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AGM PRESENTATION

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Contents

• Highlights • Technology • Products • Markets • Clean Fuel • Energy Storage • Renewable Heat • Finances • Corporate • Outlook

AGM PRESENTATION

SHEFFIELD, 12 SEPT 2012

Science has not yet mastered prophecy. We predict too much for the next year and yet far too little for the next 10.

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HIGHLIGHTS

ENERGY STORAGE | CLEAN FUEL

HIGHLIGHTS

Products | Projects | Partnerships

• £5.4m funding round completed

• £4m of new grant funding

• £2.4m TSB grant funding for EcoIsland

• GridGas project with SSE, National Grid and Shell

• First project with a German Power Utility

• Product revenues building steadily

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TECHNOLOGY

HYDROGEN ENERGY

SYSTEMS FOR

ENERGY STORAGE

AND CLEAN FUEL

PRODUCTION

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Stack development driven by cost & scale

• Small products required cost reduction

• Refuelling & gas inject needed larger scale stacks

• Rapid manufacturing capability

• Two new stack platforms have resulted

CORE TECHNOLOGY

TECHNOLOGY

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TECHNOLOGY SCALE UP

The stack is key to reliable scale up

• 2009: HCore; 0.4kg/day

• 2010: LAM1; 1.3kg/day

• 2011: LAM2; 5.0kg/day

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PRODUCT SCALE UP

Product scale up benefits from modularity

• 2009: HBox; 0.4kg/day

• 2010: HPac; 1.3-5kg/day

• 2011: HFuel; 15-100kg/day

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PRODUCTION SCALE UP

PRODUCTION CAPACITY

Station Size Dispensing Capacity (kg/24hr) Production Capacity (WE) Production Capacity (HRS) XS 80 400 400 S 212 150 150 M 420 75 75 L 1,000 30 30

Station Size Price WE-HRS (£000’s) Price HRS (£000’s)

XS 1,049 550

S 1,864 791

M 3,023 1,028

L 6,441 2,441

Progressive outsourcing with scale

• Tharsus for sub-assemblies

• Container manufacturers

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PRODUCTS

HBOX SOLAR

HPAC 10

HPAC 40

HFUEL

HGAS

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Product compliance is now an area of

considerable expertise

COMPLIANCE

PRODUCTS

FROM TECHNOLOGY TO PRODUCTS

ISO • ISO 9001 • ISO 14001 • ISO 18001 CE Marking • PED • LVD • MD • EMC Compliance • HAZOPS • HSE • Fire Service • Planning Product Standards • BSI PVE 3/8 • ISO/TC 197 • BSI GEL 105 • ISO/TC 105

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Packaging and cost reduction

SMALL PRODUCT RANGE

PRODUCTS

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HFUEL PLATFORM

ON SITE HYDROGEN GENERATION

HFUEL PLATFORM

A fully compliant hydrogen refuelling system for small fleets

• From 5kg/day to 100kg/day

• CE compliance achieved for integrated system

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HGAS PLATFORM

ON SITE HYDROGEN GENERATION

HGAS PLATFORM

A MW scale Energy Storage system

• From 25kg/day to 400kg/day

• For gas grid injection; co-firing and large fleets

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HFUEL COSTS TODAY

EU 2015 Target £1=€1.25

ENERGY STORAGE | CLEAN FUEL

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MARKETS

TRANSPORT FUEL

ENERGY STORAGE

RENEWABLE HEAT

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MARKET SECTORS

Clean Fuel

(Products & Deals)

Energy Storage

(Projects)

Renewable Heat

(Development)

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CLEAN FUEL

VEHICLE

DEPOT

ISLAND

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CLEAN FUEL: MARKETS & PROJECTS

ENERGY STORAGE | CLEAN FUEL

FUEL MARKETS & PROJECTS

Individual

Vehicle

Depot

Refuelling

Island

System

Infrastructure

Roll Out

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INDIVIDUAL VEHICLE

BOEING PRODUCT DEVELOPMENT

Packaging ATEX | CE Design EN61508

Compliance: Packaging | Design | Project

• Packaging: Transportable container

• Design: ATEX and CE compliant

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INDIVIDUAL VEHICLE

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MATERIALS HANDLING

Owner Operator _Vehicles Fuel Cells

M&S Materials Handling Pilot Trial

• First trial of its type in the UK

• ITM supplied:

• 4 Fuel Cells | 3 PPTs | 1 reach truck | Hfuel

• Rapidly growing early adoption market

• Walmart | Coca-Cola | FedEx

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M&S TRIAL | TECHNOLOGY

ITM Power | Exclusive European Distributor

• Enables ‘one stop’ offering

• New entrant in Europe

• Enables deals in the US

• CE compliance in-process (due mid Q4)

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H

2

MOBILITY

FUEL CELL CARS

INFRASTRUCTURE

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FUEL CELL CARS

VEHICLES | ROLL OUT

FUEL CELL CARS: RACE TO MARKET

2012/13 Hyundai ix35 FCEV

2014 Daimler F-Cell 2015 Honda Clarity 2015 Toyota FCV-R 2015 GM Opel HydroGen4 2015 Nissan X-TRAIL FCV 2015 VW HyMotion 2015 Ford Explorer FC SUV

2015 Audi A2H2 2015 Daihatsu FCHV Mini MPV 2015 Mazda 5 Premacy 2015 Renault Scenic ZEV H2

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ECOISLAND

Power & Vehicles Control System Intelligence Wireless Vehicles Vehicles

Hydrogen Energy Storage Smart Grid

• £2.4m TSB grant (£1.3m direct to ITM)

• First installation 100kg/day refueller

• Fleet of 20 vehicles

• Hydrogen balancing supply and demand

• Revenue stream from hydrogen sales

CLEAN FUEL DEALS: ECOISLAND

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UK H2MOBILITY

The development of a national hydrogen plan

• To determine the infrastructure investment required

• 4 Gas companies

• 6 Automotive OEM’s

• DECC | BIS | DoT

• Close follower | Germany leads the way

INFRASTRUCTURE ROLL OUT

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Collaboration with local partner GHR

• Wholly owned subsidiary of IMI plc

• ISO | CE | TUV SUD | CEP Compliant

• German Supply Chain

• Hessen support

GERMAN MARKET

CLEAN FUEL DEALS: GERMANY

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ENERGY

STORAGE

OFF-GRID POWER

BACKUP POWER

PRIMARY POWER

GAS INJECTION

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ENERGY STORAGE MARKETS

Off-Grid

Systems

Backup

Power

Primary

Power

Gas Grid

Injection

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POWER TO GAS

The TSB funded GridGas study

• Opportunity analysis

• Compliance of gas injection

• Rapid response electrolysis

• Gas mixing

• Location of stranded gas assets in the UK

• Potential in Scotland

• Website: www.gridgas.co.uk

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POWER TO GAS

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RENEWABLE

HEAT

RESIDENTIAL CHP

INDUSTRIAL HEAT

GAS SUBSTITUTION

GAS INJECTION

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RENEWABLE HEAT MARKETS

Residential

CHP

Industrial

Processes

Natural Gas

Substitution

Gas Grid

Injection

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Joint integrity and qualification is key

• Partnership with TWI and EU funding

• Demonstrations and trials started on large units

• Very strong customer engagement

FLAME PRODUCTS

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FINANCES

BURN RATE

FUNDING

PRODUCT SALES

GRANTS

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RESOURCE ALLOCATION

COSTS: RESOURCE ALLOCATION

Emphasis on sales, marketing and grant resource

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Dr Graham Cooley CEO Dr Simon Bourne CTO Steve Jones BDM Phil Doran Germany Geoff Budd US & Canada Steve Hallett BDM

ENERGY STORAGE | CLEAN FUEL

BUSINESS DEVELOPMENT & SALES TEAM

Charle Purkess PR & Marketing Manager

Rebbeca Markille Marcomms

Dr Rachel Smith Ops Manager

Prof Marcus Newborough Dev Director

Barry Cunliffe CFO

Dr John Newton BDM

MARKETING

GRANT FUNDING TEAM

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REVENUE: GRANT FUNDING

Grant funded projects deliver on a number of levels

For year ending April 30th₂₀₁₂

• £0.98m paid or secured

For the period to 2015

• £4.0m secured & negotiating

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PRODUCT SALES | GRANTS

Sales are often confidential; we announce when possible

Order book needed strong balance sheet

For year ending April 30th₂₀₁₂

• £1.46 total inflow • £0.48m product sales • £0.98 grant funding Target for 2013 • £3.5m total inflow (x2.4) • £1.5m sales (x3) • £2.0m grant funding (x2) Target

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FUNDING RATIONALE

RATIONALE FOR THE FUNDING

Responding to the Strong Balance Sheet Condition

for Commercial Tendering

• Funding 4 commercial sectors

• Being developed from 4 initial reference deals

• Boeing | UAV’s

• M&S | Materials Handling Trial

• EcoIsland | UK Mobility

• GHR | EU Mobility

• Energy Storage by Gas Injection

• Lease model working capital requirements

• Balance Sheet underpinning for maintenance income

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FIVE COMMERCIAL PIPELINES

COMMERCIAL PIPELINE

UAV:

Rapidly expanding civilian UAV market

Pipeline:

Engaged with 3 of top 5 aerospace companies

MHV:

Early adoption market for fuel cells and hydrogen

Pipeline:

Engaged with 6 of the top 10 UK retailers

UKH

₂

Mobility:

Roll out of hydrogen infrastructure in UK

Pipeline:

Engaged with 3 UK network operators and TSB

Germany:

National first mover

Pipeline:

Engaged with 2 Federal States and 2 Utilities

Gas Injection:

Low cost energy storage

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CORPORATE

AWARENESS

OUTLOOK

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Hydrogen energy storage tops DECC priorities list

Meetings with:

• Nick Clegg, Deputy Prime Minister

• David MacKaye, Chief Scientific Advisory, DECC

• Alex Salmond, First Minister, Scotland

• Greg Barker, Minister, DECC

• Charles Hendry, Minister, DECC

• Boris Johnson, London Mayor

• Kit Malthouse, Deputy London Mayor

BUILDING PRODUCT & BRAND AWARENESS

AWARENESS

DECC BIS DoT City Hall

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CORPORATE

AN END TO OUR RELIANCE ON FOSSIL FUELS

AWARENESS

On-Line | YouTube | SalesForce | Exhibitions

• 4 Language Websites

• YouTube: 743, 609 views

• SalesForce: 9,000 contacts

On average:

• 1 industry visit and presentation per day

• 1 industry conference presentation per week

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In the spotlight | focussed on delivery

• Well timed, well positioned offering

• Strong customer engagement

• International reputation

• Strong balance sheet

• A developing revenue stream

OUTLOOK

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AGM PRESENTATION

www.gridgas.co.uk