ITM Power : Final Results for the Year to 30 April 2018

ITM Power (AIM: ITM), the energy storage and clean fuel group, announces preliminary results for the year ended 30 April 2018, during which time activity levels significantly increased. To support this level of activity, the Company successfully raised £29.4m (gross) of working capital via a placing and open offer. The Group currently has £24.1m under contract and a further £6.5m in the final stages of negotiation, constituting a total pipeline of £30.6m having recognised £9.7m of income in H2 2018.

FINANCIAL:
• Total Revenue & Grant Funding of £14.1m (2017: £9.2m) up 53%, comprising:
o Product revenue - £3.3m (2017: £2.4m) up 36%
o Grant income recognised on the income statement - £4.1m (2017: £4.2m) down 0.5%
o Grant income recognised on the balance sheet - £6.7m (2017: £2.7m) up 152%
• Loss from operations £6.5m (2017: £3.6m) up 83%, including £0.9m of one-off items
• EBITDA loss of £4.8m (2017: £2.3m) up 109%
• Available cash balance of £20.4m at year-end (2017: £1.6m) post the December 2017 fund raise
• Net current assets excluding stock of £30.1m (2017: £7.4m)

COMMERCIAL:
Hydrogen Fuel:
• £8.8m OLEV funding as part of the delivery of the largest expansion of hydrogen refuelling station (HRS) infrastructure in the UK, of which £4.9m is granted to ITM Power
• 14 wholly owned HRS assets in ITM Power's portfolio:
o six are open to the public
o three are already under construction and due to open Q3 2018
o five further stations now fully funded and in the planning stages due to open Q2 2019
• UK Electrolyser HRS Generating Capacity to hit 3 Tonne/day, 1k Tonne/year
• Fuel contract with the Met Police and others to refuel 200 new FCEVs
• New hydrogen refuelling station opened at Shell Beaconsfield on the M40
• Hydrogen fuel contracts are now 20 in total
• Fuel sales increased to 16 tonnes for the period, up 672% which expected to grow further as more stations come on stream and fleets expand

Power-to-Gas (P2G):
• Completed large-scale P2G Deployment Study with Northern Gas
• Grant to undertake a multi-MW P2G feasibility study for the Massachusetts region
• Grant to evaluate P2G in British Columbia with BC Hydro, Chiyoda and Mitsui
Renewable Chemistry:
• 10MW refinery hydrogen project with Shell to build the world's largest PEM electrolyser at the Rhineland refinery, Germany

CORPORATE:
• New factory premises identified and heads of terms agreed, detailed space planning underway. Terms are expected to be signed in Q4 of this calendar year
• Significant investment in expansion of the manufacturing and after sales support teams
• Creation of Australian subsidiary, ITM Power Pty Ltd, and appointment of Dr Neil Thompson as MD
• Appointment of Andy Allen as Financial Director
• Working Capital Funding Round successfully raising £29.4m gross via a placing and open offer
• The Group currently has £24.1m under contract and a further £6.5m in the final stages of negotiation, constituting a total pipeline of £30.6m having recognised £9.7m of income in H2 2018
• Non-contracted tender opportunity pipeline increased to over £250m (September 2017: £200m), illustrating the growth in the hydrogen economy

SINCE YEAR END:
• Strategic Partnership Agreement with Sumitomo Corporation for product sales in Japan and other territories

Graham Cooley, CEO, commented, 'This financial year has been a period of significant development for ITM Power. With revenue increasing by 53%, the Company has been focussed on the expansion of staff and the planning of the new, larger production facilities. We've also been learning how to maximise a growing portfolio of revenue generating assets in the shape of the first real hydrogen refuelling network in the UK. Finally, Power-to-Gas is now demonstrating real traction around the world and we remain very well placed to benefit from this development with our long-running reference plant in Germany.'

Roger Putnam, Chairman, added, 'I was delighted to report earlier in the year that ITM Power had raised £29.4m of working capital. Our plans for expansion of staff and production capacity are on track and I am delighted to note the significant increase in our top line result. As always, I would like to thank the 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 Graham Cooley, CEO +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and Broker) Jeremy Ellis / Chris Sim / Alexander Ruffman +44 (0)20 7597 5970
Tavistock (Financial PR and IR) Simon Hudson / Nick Elwes / Barney Hayward +44 (0)20 7920 3150

About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions which are rapid response and high pressure that meet the requirements for grid balancing and energy storage services, and for the production of clean fuel for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. The Company received £4.9m as a strategic investment from JCB in March 2015. The Company signed a forecourt siting agreement with Shell in September 2015.