Presentation from 20.01.11

1. ITM Power plc
Interim Results Presentation, 20th Jan 2011
“With more than 500 Fuel Cell cars covering over 15m km and
90,000 refuellings the focus has now shifted from
demonstration to planning commercial deployment”
McKinsey & Company
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

2. ITM Power plc
Interim Results Presentation, 20th Jan 2011
Contents
Progress Summary
Product CE and Commercialisation
Product Trials
Projects
Interim Results
Outlook
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

3. Summary of Successes
A Year of Accreditation, Trials, Grants and Early Revenue
2011 will be the transformational year
• Strong technology progress
• Game changing Fuel Cell performance
• 5 products defined and launched
• HPac CE mark achieved
• 3 product trial partners
• 21 HOST trial partners
• £1m of grants from TSB, CT, YF and EPSRC
• Awareness campaign has been hugely successful
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

4. Summary of Challenges
A Year of Accreditation, Trials, Grants and Early Revenue
Some key challenges to address
• Establish product longevity
• Fuel cell business model and long term partner
• Product manufacturing to cost and volume
• Product reliability in the field
• Product sales channels with healthy margins
• A small number of significant grants
• Awareness turned into revenue
• Adoption of hydrogen refuelling
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

5. CE Marking Update
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

6. CE Marking
Strategy and Current Status
Documented evidence of compliance to the relevant directives
• Prioritised HPac (>3,500 hours system operation)
• HBox and HFlame in a more rapid follow-on process
• Progress on HLab has been temporarily suspended to prioritise others
ISO CE Marking Sales Timescale
CAD BoM Routing Procure PED MD Atex EMC Trials Pricing Channel
HPac Completed
HBox End of Q1
HFLame End of Q1
HLab End of Q2
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

7. CE Marking
New Universal Control System
Documented evidence of compliance to the relevant directives
• Developed a new, compliant control system
• Can be used for all products to increase volume and reduce cost
• Significant cost reductions in production
• Option to part populate for less complex products
• Data logging and telemetry incorporated
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

8. The CE Marking Process
A Framework for CE Approval
Have established good working relationships
• Hydrogen was new to most of the Notified Bodies
• Initially NoBo’s were slow to respond
• We have led the framework for compliance
Product Relevant Directives
MachD EMC ATEX PED
HPac X X X X
HLab X X X
HBox X X X X
HFlame X X X
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

9. HPac Market Offering
HPac10 Market Offering
Available for sale at Hannover Messe in April
• Fuel cell labs
• Universities
• Hydrogen demonstration projects
• Small refuelling demonstrations
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

10. HPac Market Offering
HPac10 Manufacturing
Partnership with Tharsus
• Well respected company
• Many blue chip partners
• From bespoke to batch production
• High volume capability
• Coherent manufacturing approach
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

11. Product Trials
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

12. Product Trials
HPac | Birmingham University
First product sale, first major trial
• Product Delivered
• Commissioning Jan
• On board telemetry
• Dedicated technician
• Integration with fuel cell lab
• Integration with vehicle refuelling
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

13. Product Trials
HBox PV | Glamorgan University
First green hydrogen trial
• Verbally agreed, negotiating contract
• Delivery Q2
• Commissioning Q2
• Strategic relationship
• Spingboard to M4 corridor tenders
• On board telemetry
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

14. Product Trials
HFlame | Ametek Brazing Trial
First niche flux-less brazing of refrigeration systems
• Portable flame generator
• High temperature thermal process
• Delivery Jan 31
• Trials during Q1
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

15. HOST
ITM POWER | Final 9th December 2010
3M Results Presentation, 30 July 2010
ITM POWER | Interim Results Presentation 20th Jan 2011
ITM POWER | Interim Results Presentation 20th Jan 2011

16. HOST | Phase One
HOST | Phase One
The Largest UK Cross-Sector Hydrogen Trial
• 21 commercial trial partners
• Balanced across 7 major industrial sectors
• No further partners will be offered a free trial
• Conducted over a year long period
• Using a dedicated team
• Data comprehensively reported to partners
• Non confidential results will be published
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

17. HOST | Partners
Hydrogen on Site Trials
Trials begin Q1 2011
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

18. HOST | Opening
Stansted Airport Opening
On 8th March 2011 at the Hilton Hotel Stansted
• Register online
• 250 visitor places
• 150 already booked
• Presentations
• Partner display area
• Refuelling demonstration
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

19. Funded Product Development Projects
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

20. Funded Product Development Projects
Next Energy | Home Refuelling
Design stage complete | Final report submitted
• Further DoE funding sought
• Car companies very interested
• ITM’s reputation significantly enhanced
• High pressure electrolysis desirable
200 Bar Prototype Stack
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

21. Funded Product Development Projects
CREO | Emissions Control
Carbon Reduction by Emissions Optimisation
• On-board H2 dispensing to exhaust
• TSB funded project
• Led by Ford
• Strong partners
• A potential new product
• New website coming soon
• www.creoproject.com
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

22. Fuel Cell Current Status
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

23. Fuel Cell MEA Performance
The Fuel Cell MEA
A step change in fuel cell performance
• Outstanding power density | highest recorded
• Vast potential in applications with challenging weight and volume constraints
• Cost saving potential via miniaturisation
Hydrogen & Oxygen at 30 psi
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

24. Fuel Cell Development Path
The Fuel Cell MEA
Research and development challenges
• Early stage project to establish performance with air
• Characterise to industry protocols
• Target the automotive sector
• Seek end user partnerships
• Address new challenges presented by ultra high current density
• Funded by the Carbon Trust
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

25. Hydrogen Refuelling | Market Developments
ITM POWER | FinalInterim Results Presentation th Jan 2011
ITM POWER | Results Presentation, 30 July 2010
ITM POWER | Interim Results Presentation 20 20th Jan 2011
Open Day Presentation

26. Hydrogen Refuelling | Market Developments
Oil Prices
Oil and Gasoline Prices are Steadily Rising
• Crude oil approaching $100 a barrel
• The age of cheap oil is over
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

27. Hydrogen Refuelling | Market Developments
Japan, US & Germany Adopt Hydrogen
Toyota, Honda and Nissan join forces to promote hydrogen
• Total of 100 hydrogen refuelling stations planned in Japan
• 1000 refuelling stations in Germany in 4yrs ($2.6bn)
• 150 planned in California (30 already built)
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

28. Hydrogen Refuelling | Market Developments
The Hydrogen Tide is Turning in the UK
Energy storage for renewables is now linked to hydrogen
• Questions in the house from Charles Hendry
• David Willetts in presentations
• Kit Malthouse in The Times
• Bow Group paper
• ITM power now associated with renewable energy storage
• ITM featured in Boxing Day Sunday Times
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

29. ITM Power plc
Interim Results 20th Jan 2011
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | InterimPresentation 15th Dec 2010 2010
Board Results Presentation July

30. Interim Financial Results to 31 Oct 2010
Financial Highlights
• Pre-tax loss down to £3.0m from £3.4m
• Period end cash balance £14.7m
• Cash burn in period £2.2m
• Investment in fixed assets £478k, including HFuel £343k
H2 2011 Focus
• Maximise expenditure control
• Maximise automated transactions through integrated systems
• Optimise inventory and consolidated purchasing
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

31. Grant Funding
Grants to Year End 30 April 2011
To develop commercial relationships and reduce burn rate
• Target £700k
• £1m achieved
• Targeting larger EU & US grants
Grants Summary for Year End 30 April 2011
Project Grant Body Committed Invoiced Accrued Total
HydroGen TSB 325,000 39,013 197,670 236,683
HFuel TSB 338,000 120,291 201,709 322,000
5kg Stack YF 195,000 102,357 71,643 174,000
Home Refueller NE 60,000 25,604 34,396 60,000
CREO TSB 247,000 0 110,000 110,000
PhD's EPSRC 88,000 0 0 0
FC Carbon Trust 108,000 0 108,000 108,000
TESS NHA Business Link 3,761 3,761 3,761
TESS Hannover Business Link 5,000 5,000 5000
Innovation Vouchers Business Link 6,000 6,000 6,000
Totals 1,375,761 297,026 728,418 1,025,444
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010

32. Outlook
• Strong Technology Platform
• ISO accreditation
• Focused on products
• HPac CE mark achieved
• Three field trials
• 21 commercial partners for HOST
• Strong cash position - £14.7m
ITM POWER | Final Results Presentation, 3020th Jan 2011
ITM POWER | Interim Results Presentation July 2010