Redflow H1 FY20 Results 27 February 2020
Disclaimer This presentation has been prepared by Redflow not constitute investment advice, nor shall it or any Redflow that the forward-looking statements Limited ( “Redflow” ). It contains general information part of it or the fact of its distribution form the basis contained in this presentation are accurate, about Redflow as at the date of this presentation. of, or be relied on in connection with, any contract or complete, reliable or adequate or that they will be The information in this presentation should not be investment decision. achieved or prove to be correct. considered to be comprehensive or to comprise all of the material which a shareholder or potential Certain statements in this presentation are forward- investor in Redflow may require in order to looking statements. You can identify these Subject to any continuing obligation under applicable determine whether to deal in shares. The statements by the fact that they use words such as law or relevant listing rules of the ASX, Redflow information in this presentation is of a general nature “anticipate”, “estimate”, “expect”, “project”, disclaims any obligation or undertaking to only and does not purport to be complete. “intend”, “plan”, “believe”, “target”, “may”, disseminate any updates or revisions to any forward- “assume” and words of similar import. Indications of, looking statements in this presentation to reflect any This presentation does not take into account the and guidance on, future earnings and financial change in expectations in relation to any forward- financial situation, investment objectives, tax position and performance are also forward-looking looking statements or any change in events, situation or particular needs of any person and statements. conditions or circumstances on which any such nothing contained in this presentation constitutes statements are based. Nothing in this presentation investment, legal, tax or other advice, nor does it Forward-looking statements, opinions and estimates shall under any circumstances create an implication contain all the information which would be required provided in this presentation are based on that there has been no change in the affairs of in a disclosure document or prospectus prepared in assumptions and contingencies which are subject to Redflow since the date of the presentation. accordance with the requirements of the change without notice, as are statements about Except for any statutory liability which cannot be Corporations Act 2001 (Cth). market and industry trends, which are based on excluded, Redflow and its respective officers, interpretations of current market conditions. employees and advisers expressly disclaim all liability Readers or recipients of this presentation should, Forward-looking statements, including projections, (including negligence) for any direct or indirect loss before making any decisions in relation to their guidance on future earnings and estimates, are or damage which may be suffered by any person in investment or potential investment in Redflow, provided in this presentation as a general guide only relation to, and take no responsibility for, any consider the appropriateness of the information and should not be relied on as an indication or information in this presentation or any error or having regard to their own objectives and financial guarantee of future performance. Forward-looking omission therefrom, and make no representation or situation and seek their own professional legal and statements are based on current expectations and warranty, express or implied, as to the currency, taxation advice appropriate to their particular beliefs and, by their nature, are subject to a number accuracy, reliability or completeness of this circumstances. of known and unknown risks and uncertainties that presentation. could cause the actual results, performances and This presentation is for information purposes only achievements to differ materially from any expected By attending an investor presentation or briefing, or and does not constitute or form part of any offer, future results, performances or achievements by accepting, accessing or reviewing this invitation, solicitation or recommendation to acquire, expressed or implied by such forward-looking presentation, you acknowledge and agree to the purchase, subscribe for, sell or otherwise dispose of, statements. No representation, warranty or terms set out in this disclaimer. or issue, any shares. Further, this presentation does assurance (express or implied) is given or made by Company Overview 2 Positioned to redefine energy storage in our target markets RFX Investor Presentation - February0
Key Message We are now at a key inflection point of growth and are actively engaged with global telco and tower operators which represent over 70,000 towers under management and have the requirement and capacity to drive material battery orders for Redflow. Company Overview Positioned to redefine energy storage in our target markets RFX Investor Presentation - February0
Table of contents 1. Company Summary 2. Financials 3. Operations 4. FY20 Key Priorities 5. Appendices Visit by Australia’s Chief Scientist, Dr Alan Finkel, to Children and Family Centre at Wantirna South, Melbourne, Australia 4
Company Overview Redefining energy storage in our target markets Headquartered Company owned manufacturing In Brisbane, Australia facility in Thailand Redflow designs and manufactures zinc-bromine flow batteries Major Target Markets Key Geographies Telco South Africa & Southern Africa Commercial, Industrial & Utility Australia Remote Area Power Systems New Zealand High end Residential China and Selected Asia 60+ current deployments across multiple countries Market for redox flow batteries forecast to be worth US$4.5 billion by 2028 * * Source: IDTechEx Aug 2018 Company Overview 5 Positioned to redefine energy storage in our target markets RFX Investor Presentation - February0
1H20 Key Highlights Financials • Revenue up 282% on prior corresponding period (pcp) to $1,437k • Gaining momentum with $316k in follow up orders from strategically important customers • 127% increase on pcp in cash receipts to $1,390k (1H19: $613k) • Cash balance of $5.0m as at 31 December 2019, with an R&D tax rebate of $2.0m received post balance date • Reduced Redflow Australia operating costs by $900k from pcp Operations • Initial 68 battery order delivered for use at Vodacom sites through partner Mobax following extensive Vodacom testing • Experienced Sales Director hired to promote Redflow and secure new customers in South Africa • Selected by the Rural Connectivity Group (RCG) in New Zealand to provide batteries for new cell sites in rural locations. First site delivered. Broader commercial agreement with RCG, expected to be finalised over the coming months • Worked with TIEC Electrical to install a battery-based energy storage system at a remote station in Western Australia • Moderated production Redflow Thailand facility to preserve cash. Can rapidly scale to commercial quantities Innovation and Technology Leadership • Continued investment in R&D to maintain industry leadership and improve battery performance • Access to Australian government R&D rebate schem e • Material progress on key projects and supplier negotiations to deliver 30% cost down target • Additional innovation developed for telco sector focused on anti theft solutions and easier deployment • Ongoing investment in patent portfolio • High profile visit by Australia’s Chief Scientist , Dr Alan Finkel, to Knox City Council deployment Company Overview 6 Positioned to redefine energy storage in our target markets RFX Investor Presentation - February0
Customer Value Proposition Targeting markets and applications where our unique battery technology has the strongest customer value proposition South Africa South Africa Australia Diesel Reduction Weak-grid Resilience & Off-Grid Productivity Battery Theft Avoidance New Zealand Australia Thailand Renewable integration Power Consumption On and Off-Grid Optimised minigrid operations Reduction On-grid Company Overview 7 Positioned to redefine energy storage in our target markets RFX Investor Presentation - February0
H1 FY20 Financials 8
Profit & Loss Revenue for the period was up 282% on prior corresponding period (pcp) to $1,437k with A$’000 H1 FY20 H1 FY19 reported profit/(loss) before income tax of Revenue 1,436.5 376.1 ($3,855k) driven primarily by: • Higher sales to customers Other Income 2,104.8 1,878.2 • Other Income up 12% resulting from an Expenses increased R&D Tax Claim Raw Materials and Consumables Used 2,694.8 1,484.4 • Other expenses -17% to $4,701k due to lower payroll costs. Other Expenses 4,701.4 5,682.1 • Raw materials and consumables used Profit/ (Loss) before Income Tax (3,854.9) (4,912.2) increased to $2,695k due to higher Cost of Income Tax Expense 44.3 - Sales a result of higher revenue, the moderation of production volumes resulting Profit/ (Loss) after Income Tax (3,899.1) (4,912.2) in an under recovery of manufacturing Other Comprehensive Income 3.8 (18.4) overheads and the expensing of all freight as it is incurred Total Comprehensive Loss Year (3,895.3) (4,930.6) Company Overview 9 Positioned to redefine energy storage in our target markets RFX Investor Presentation - February0
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