Redflow FY19 Results 30 th August 2019 redflow sustainable energy storage
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Table of contents 1. Company Summary 2. Fy19 Highlights 3. Manufacturing Update 4. Commercialisation Strategy 5. FY19 Financials 6. FY20 Priorities 7. Business Summary Children and Family Centre at 8. Appendices Wantirna South, Melbourne, Australia 3
Company Overview Established in 2005. Listed on ASX in 2010 (ASX:RFX) Netherlands Redflow designs Germany and manufactures zinc Poland bromine flow Italy batteries China Jordan Thailand (plus the Manufacturing Plant) Headquartered in Australia. Company Fiji owned manufacturing facility in Thailand New South Africa Zealand States in Australia : QLD (Corporate Head Office Brisbane) Over 60 deployments SA (Office in Adelaide) currently operational VIC, NSW, TAS across multiple countries Redflow is positioned to redefine energy storage in our target markets 4
FY19 Highlights • Thailand factory now stable and producing high quality batteries Scalable • Produced 150 batteries in Dec 18. Scalable model for immediate demand Manufacturing • ISO9001 accreditation awarded in July 2019 • 30% Cost-down engineering program underway • Attractive set of end customers and initial deployments across target markets and geographies – potential to scale to volume orders Customer & • Growing order book Markets • Extended partner eco-system in core target markets – South Africa, NZ, Australia • Reference deployment in China in partnership with Zbest Power • Revamped Board and management team focused on commercialisation • Chief Commercial Officer, CFO and Chief Deployment Officer recruited in last 12m Board & • Directors with deep technology and manufacturing experience recruited Management • Investment in core customer facing capabilities required for sales growth & delivery • Ongoing investment in R&D to maintain industry leadership and improve battery performance. Ongoing access to Australian government R&D rebate scheme Technology • Material progress on key projects include Gen3 stack, new electronics and tank design Leadership – core to achievement of 30 % cost down target • Additional innovation developed for telco sector – anti theft solution
Manufacturing Update 6
Successfully transitioned manufacturing in-house to our facility based in Thailand 1. Awarded ISO 9001 accreditation in July 2019 2. Facility now proven at 150 batteries/month achieved in Dec 2018. Scale to 250 /month only requires double shift in selected processes (30 MWh) 3. Leveraged one of the key tenants of in-sourcing manufacturing by current significant scale down of production to match manufacturing with demand and preserve working capital 4. Work has continued to improve core processes, quality metrics, undertaking necessary maintenance and ensuring the plant is ready for production ramp up. 5. Key engineering and productivity projects underway to deliver 30% cost down from pre- Thailand unit costs by end June 2020 6. Moderate levels of capex required to reach ~450 batteries /month (55 MWh) ($ 2-3M) Production Quality Health and Yield Assurance Safety 7
Commercialisation Strategy 8
Redflow Customer Value Propositions Targeting markets and applications where our unique battery technology has the strongest customer value proposition Off-grid – Diesel Reduction Weak-grid Resilience & Productivity Battery Theft Avoidance On & Off grid Renewable integration Optimised minigrid operation On-grid Power Consumption Reduction 9
Major target markets Main Focus Commercial, Industrial Remote Area Power Telco & Utility Systems (RAPS) • >4m cell towers globally • Multiple industries where stable • Battery Energy Storage System • Power costs a major cost factor and cost efficient power is (BESS) crucial to RAPS containing • Increase in infrastructure sharing critical renewable energy sources & can • Key issues include intermittent and tower companies improve fossil fuel gen. efficiency • Battery theft & commercial and • Ideal battery for this use has high power, high peak demand tariffs environmental concerns over and maximising renewable use temperature tolerance, no • Address solar curtailment diesel use are increasing issues capacity decline and 100% daily depth of discharge Redflow offers a technical and Redflow can reduce energy costs by Redflow solution is technically well commercial value proposition replacing / supplementing grid suited to these and our ten year life across Off-grid, Weak-grid and power and avoiding demand tariffs offers an attractive commercial Back-up power supply applications through storing off peak energy proposition Our sweet spots include… Frequency Warm climates that rapidly Energy-focussed Applications Cycling degrade other Batteries RFX Investor Presentation Dec 2018 10
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