ITM Power : 2022 ITM Annual Report

Leaders in

green hydrogen

Annual Report and

Accounts 2022

1

ITM Power PLC Annual Report 2022

Overview Strategic Report Governance Financial Statements Shareholder Information

Welcome

ITM Power manufactures integrated hydrogen energy solutions to enhance the utilisation of renewable energy that would otherwise be wasted.

Overview

1. Welcome
2. FY22 Highlights

Strategic Report

1. Investment Case
2. REFHYNE
3. Statement from the Chair of the Board
   8 Chief Executive Officer's Review

1. Chief Financial Officer's Review

1. Our Market

1. Our Strategy
2. Our Business Model
3. Our Stakeholders and Section 172(1) Statement

1. Sustainable Energy, Engineered Sustainably

1. Principal Risks and Uncertainties

1. Going Concern

Governance

1. Introduction from the Chair of the Board
2. Summary of Application of the QCA Code

1. Board of Directors

1. Corporate Governance Report

1. Audit Committee Report

1. Remuneration Report

1. Directors' Report

1. Directors' Responsibilities Statement

Financial Statements

72 Independent Auditor's Report

to the Members of ITM Power PLC

78 Financial Statements

Shareholder Information

1. Glossary
2. Officers, Professional Advisors and Useful Contacts

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ITM Power PLC Annual Report 2022

Overview Strategic Report Governance Financial Statements Shareholder Information

FY22 Highlights

Green hydrogen will help lead the world towards decarbonisation.

755 MW

Order backlog for our products (2021: 421 MW)

£5.6m

Revenue

(2021: £4.3 million)

£1.4m

Core product research spend, with a further £7.0 million on development (2021: £3.5 million and £1.5 million respectively)

£4.1m

Capital expenditure invested in the year

£(39.8)m

Adjusted EBITDA (2021: £(21.4) million)

£366m

Net cash

(2021: £176 million)

388

Employees at year end

50%

Reduction in RIDDOR incidents per employee in the last year (number of RIDDOR incidents: 2022: 1; 2021: 1)

3

ITM Power PLC Annual Report 2022

Overview Strategic Report Governance Financial Statements Shareholder Information

Strategic

Report

In this section

1. Investment Case
2. REFHYNE
3. Statement from the Chair of the Board
   8 Chief Executive Officer's Review

1. Chief Financial Officer's Review

1. Our Market

1. Our Strategy
2. Our Business Model
3. Our Stakeholders and Section 172(1) Statement

1. Sustainable Energy, Engineered Sustainably

1. Principal Risks and Uncertainties

1. Going Concern

4

ITM Power PLC Annual Report 2022

Overview Strategic Report Governance Financial Statements Shareholder Information

Investment Case

An attractive market

Net zero is the internationally agreed goal for mitigating global warming by 2050. Geopolitical uncertainty has accelerated the need for both energy and food security. Electrolysers, when coupled with renewable power are the only vehicle through which green hydrogen can be produced.

Well capitalised

We raised £250 million in November 2021 and at our year end we had £365 million of net cash on the balance sheet. This capital will enable us to invest to meet what we expect to be significant demand for our electrolysers over coming years as the race to decarbonise accelerates.

ITM Power Service

Today we provide 24/7 support from our control centre at Bessemer Park. Collection and collation of performance information and data enables a virtuous circle of reliability, availability and maintenance outcomes which in turn provides value to and enhances the relationship with our customers.

A portfolio of products

We produce three core products. Plug & Play contains everything needed for small scale green hydrogen production; all a customer needs to do is connect water and power. For larger projects we produce a range of stacks, which can be modularised to provide scale to larger projects.

Scalability

Our factory at Bessemer Park, Sheffield is one of the largest electrolyser manufacturing facilities in the world. By early 2023, capacity will be around 700 MW and future capacity will be increased to 1.5 GW. The remodelling at Bessemer Park includes process and equipment enhancements, all of which feed into a blueprint for future factory openings.

EPC through ILE

Engineering, Procurement and Construction (EPC) is a vital component of the hydrogen value chain. Through our joint venture with Linde, ITM Linde Electrolysis GmbH (ILE), we have access to unrivalled knowledge and skills which de-risks the design and build out of projects, in particular, larger projects.

Reference plant

We have been manufacturing electrolysis equipment for many years and have deployed plant across the world. Learnings, both by ourselves and our customers, enhance and improve the future development and deployment of our electrolysers.

Partnerships

Our partnerships with companies such as Shell, Linde and ScottishPower have evolved over many years. These partnerships confirm our leading technologies and capabilities. As the green hydrogen value chain aligns, we would expect further partnerships to manifest.

Our people

People do not join ITM Power just for a job, they join because they are passionate about our vision and they are determined to help us make an everlasting difference to the planet. We have a highly skilled team working at the cutting edge of technology.