Analyst presentation

Ceres Power Holdings plc will be hosting a live webcast for analysts and investors on 21 March 2025 at 09.30 GMT. To register your interest in participating, please go to:

https://sparklive.lseg.com/CeresPowerHoldingsCrawley/events/2090b911-c4ab-43ca-846a-02a55cd1f1b8/2024-full-year-results

For further information visit www.ceres.tech or contact:

About Ceres

Ceres is a leading developer of clean energy technology: fuel cells for power generation and electrolysers for the production of green hydrogen. Its asset-light, licensing model has seen it establish partnerships with some of the world's largest companies, such as Doosan, Delta, Denso, Shell, Weichai and Thermax. Ceres' solid oxide technology supports greater electrification of our energy systems and produces green hydrogen at high efficiencies as a route to decarbonise emissions-intensive industries such as steelmaking, ammonia and future fuels. Ceres is listed on the London Stock Exchange ("LSE") (LSE: CWR) and is classified by the LSE Green Economy Mark, which recognises listed companies that derive more than 50% of their activity from the green economy. Read more on our website www.ceres.tech or follow us on LinkedIn. Read more on our website www.ceres.tech or follow us on LinkedIn.

Chief Executive's statement

I am proud to report that Ceres has achieved a record-breaking commercial year in 2024. We reached our highest annual revenue and order intake ever, thanks to three significant partner licence agreements. These successes highlight our intensified focus on commercial activities as we expand our partnership portfolio into new territories worldwide. Consequently, Ceres is in a robust financial position as we establish our technology as an industry standard. This will enable us to secure a growing share of both the power generation and green hydrogen production markets as we move towards first production and royalties this year.

We have seen growing demand over the past 12 months for power solutions, which can utilise existing fuels such as natural gas and future fuels such as hydrogen to be deployed rapidly to meet the growing need of AI data centres and industrial power needs. In addition to our SOFC business, Ceres has accelerated the development of its electrolysis technologies to enter the rapidly expanding green hydrogen industry. Over the past three years, our ongoing innovation in core solid oxide technology has led to a highly efficient and cost-effective mode of hydrogen electrolysis for hard-to-abate industrial sectors, such as green steel, ammonia and synthetic fuels production. It is incredibly satisfying to see global manufacturing companies recognising this technology as a  solution for both meeting rapidly growing power demand and also to address industrial decarbonisation.

A year of significant commercial progress

Our first new manufacturing partnership and licence agreement of 2024 was announced in January with Taiwan's Delta Electronics. With 80,000 people across approximately 200 facilities, Delta is a manufacturing giant active in the chemicals, energy, transportation and steel sectors. This was Ceres' first dual licence for the production of both SOFC and SOEC stacks.

Our expertise in high-efficiency power generation and green hydrogen production complements Delta's mass manufacturing capabilities, financial and physical resources and end-market presence. The partnership enables Delta to move quickly into decarbonisation solutions and complement its current portfolio of product servicing markets such as data centres, smart buildings, energy infrastructure, grid balancing and energy storage solutions. Delta is expected to start manufacturing by the end of 2026, with keen ambitions for rapid future scale-up.

In July, we signed a SOEC manufacturing licence with Japan's Denso Corporation, a global Fortune 500 company employing over 160,000 people in 35 countries and regions worldwide. The partnership will enable Denso to produce Ceres' stack technology under licence, leveraging Denso's expertise in system control and thermal management to develop technology in green hydrogen production. In common with other manufacturing licence partnerships, this agreement provides revenues for licence fees, engineering services and hardware over multiple years, as well as future royalty payments.

In addition to securing two new manufacturing licences, Ceres signed its first SOEC system licence partnership with Thermax in September. Strategically, this is an important relationship for us, taking the business into a significant new region for decarbonisation technologies. Thermax is one of India's largest process equipment manufacturers with an extensive industrial portfolio that includes clean air, clean energy, clean water and chemical solutions. With industry expertise, it is ideally placed to accelerate deployment of our technology by engaging end users to pull the technology into hard-to-abate green ammonia, petrochemical and steel industries.

Our collaboration with Shell to deploy a 1MW SOEC demonstrator was installed in 2024 and is now ready to produce hydrogen and to deliver important test and performance data. This partnership has been extended to develop of a 10MW pressurised module, targeting hydrogen production at 37kWh/kg. The design would be modular, with the potential to be scaled to hundreds of megawatts and integrated into industrial plants to produce sustainable future fuels.

The scale-up design builds upon the work undertaken with AtkinsRéalis, a world-leading engineering, procurement and construction ("EPC") services group, to deliver the frontend engineering design ("FEED") for a commercial hydrogen production system based on Ceres' SOEC technology. This design provided a blueprint of the optimum system architecture for a 100MW+ electrolyser system to produce green hydrogen. We will be validating this pressurised module with a demonstration project to highlight a highly efficient pathway to low-cost green hydrogen production for industrial applications.

In parallel to our initiatives in SOEC, Ceres now has three licensees for our SOFC technology and our focus remains on supporting the execution of their respective solid oxide cell and stack manufacturing facilities through to start of production and first product sales using the Ceres technology.

We expect Doosan to progress to start of production this year for its SOFC power modules for applications such as data centre and maritime power systems. Initial royalty payments to Ceres are expected by the end of 2025. This will be a pivotal moment in our history as these revenues will demonstrate the full scope of business model as our partners sell products into their end markets.

We continue to support the system development of SOFC power modules by Weichai, which has a leading position in China's gas engine market, as well as strong presence in the stationary diesel power generation industry. Weichai deployed first demonstration SOFC systems of up to 100kW to first customers in China in December 2024.

In February 2025, Bosch took the strategic decision to cease its development of SOFC cells and stacks for manufacture. Bosch stated that this decision is part of broader revised strategic direction and does not reflect Bosch's confidence in Ceres or our technology. Clearly we are disappointed that Bosch will discontinue its SOFC operations, but the impact on revenues for 2025 will be in the low single digit millions of euros.

Market backdrop and opportunities

Governments around the world have recognised the need to provide power solutions for continued economic growth. We continue to believe that our technologies have important roles to play. In power mode Ceres SOFC technology offers fuel flexibility and the highest levels of conversion from fuel to energy at 65% electrical efficiency in power-only mode, or greater than 90% when excess heat is also utilised.

This enables key regions to support the decarbonisation of energy systems as natural gas is set to remain the transition fuel of choice over the medium term. Nations such as South Korea, China, India and Taiwan will start to reduce their reliance on coal in the next few years and increase adoption of nuclear, natural gas and renewable energy power, supported by various government initiatives.

There is also high demand for energy in specific application areas, such as AI-driven data centres. The rise of cloud solutions, cryptocurrency and AI could see data centres accounting for 2,500 to 4,500 terawatt hours ("TWh") of global electricity demand by 2050, equivalent to 5-9% of the total. This demand creates greater need for gas or other sources of energy to balance out the intermittency of renewable energy sources.

While progressing towards global decarbonisation, government incentives reflect the essential role of hydrogen in meeting this goal - either as a fuel of the future, as a key feedstock in a number of industrial processes or as a carrier of energy. Many have put in place specific hydrogen strategies to incentivise the production, infrastructure development and adoption of green hydrogen.

For example, Japan aims to generate public and private investment in hydrogen worth 15 trillion yen, equivalent to around US$98 billion, over the next 15 years, with specific reference to the hard-to-abate sectors. South Korea's Hydrogen Economy Roadmap for hydrogen infrastructure and commercialisation strategies is being backed by around US$33 billion of government funding. The EU is targeting the deployment of 40GW of green hydrogen electrolysis by 2030, committing up to €470 billion in investments up to 2050 for the hydrogen economy. Furthermore, its Clean Industrial Deal sets out plans to promote green industry as well as decarbonising heavy sectors such as steel, cement and chemical manufacture.

In electrolysis mode our solid oxide technology can be operated in reverse to produce pure hydrogen from electricity and water. Our SOEC technology operates at high levels of efficiency as they can integrate waste heat from industrial processes to convert water to steam. This makes our technology a natural choice for hydrogen production for hard-to-abate industrial sectors globally.

With our partners we are targeting industries such as steel production, chemical manufacturing and sustainable future fuels. These industries are characterised by their reliance on high-temperature processes, the need for energy-dense fuels, or the use of fossil fuels as feedstock. As a result, they are difficult to decarbonise using current renewable energy sources or electric alternatives alone. By 2050, around 49% of total green hydrogen consumption will be accounted for by these hard-to-abate industries, equating to approximately 191Mt per annum.

In tandem with our technology and engineering expertise, the Ceres licensing model has been established to help accelerate the adoption of our decarbonisation technologies across these industrial sectors.

As the technology of choice for leading global original equipment manufacturers ("OEM") and systems developers, Ceres offers a faster route to market and efficient zero-carbon hydrogen production. This saves our partners the time, effort and resource needed to develop their own solutions and allows them to focus on their strengths in industrial manufacturing and distribution. In return, Ceres is able to leverage the manufacturing expertise, market presence and balance sheets of these partners to accelerate market entry for our technology.

As the geopolitical landscape shifts towards more trade barriers and tariffs, there will be an increased drive for localisation of production and supply chains. The licensing model enables Ceres to export IP across borders and to accelerate our technology towards becoming the industry standard.

Outlook: building commercial traction

Ceres continues to focus on the path to commercialisation with our partners. Our best-in-class solid oxide platform technology and a highly flexible licensing business model have attracted the biggest global manufacturers and systems developers looking to enter the power system and industrial decarbonisation markets.

The ability to generate power from a range of different fuels at high rates of efficiency is one of the key differentiators of solid oxide fuel cells. We anticipate that the first Ceres-based products containing our technology will be commercially available by the end of the year from Doosan. Doosan has identified stationary power systems for commercial and data centre applications as attractive markets. As these and other markets expand for our SOFC products, we expect to receive growing high-margin royalties

We will also remain focused on building our portfolio of SOEC manufacturing partners, targeting hard-to-abate industries that are carbon intensive and cannot be directly electrified. Our SOEC technology offers a highly efficient solution or industrial decarbonisation. While this process often involves lengthy and complex value chains, if nations wish to reach their net zero targets these industries must be decarbonised, and we have seen early momentum gathering behind our technology.

As ever, none of the achievements of the past year would have been possible without the dedication and hard work of all the people at Ceres. I'd like to thank them for their contributions in delivering our technological and commercial successes during the year, enabling us to look ahead from a position of strength.

Our clear purpose to deliver clean energy for a clean world remains our undiminished guiding principle, helping us to stay true to our values and to focus on building lasting partnerships with those who share our vision.

I see a wealth of opportunities as the high efficiency power generation and hydrogen markets around the world continue to evolve. As we build on our commercial success and technology innovation, Ceres aims to expand its partnerships globally to deploy its technology at scale and pace. I remain confident that Ceres can establish its technology as the solid oxide industry standard. This will position the Company as a key technology player in these markets for years to come.

Phil Caldwell

Chief Executive Officer

Financial review

2024 was a record year for Ceres with two major manufacturing licence deals and an electrolyser systems licence announced, enabling near-term licence and support revenue with future royalty generation. This, along with the continued execution of existing agreements, has led to record revenue of £51.9 million (2022: £22.3 million).

During 2024, Ceres continued its strategic investment in core technologies to drive future growth. With peak investment in technology development milestones reached in 2023, we implemented a restructuring to optimise our cost base. This streamlining of the business now allows us to focus on further commercialisation.

Revenue

The Group reported revenue of £51.9 million in 2024, compared with £22.3 million in the prior year. The 132%

growth can be mostly attributed to revenues generated from the new licence partners as up-front technology transfers were conducted. Revenue is a combination of technology transfers, development licences, engineering services and the provision of technology hardware. Revenue from the previously announced Shell test evaluation partnership will commence once the demonstrator is commissioned at Shell's site in Bangalore, India in Q1 2025.

Gross margin

Gross profit of £40.2 million in the year grew by 196% from £13.6 million in 2023, driven by high-margin technology transfers conducted with the new licence partners. Consequently, gross margins were also improved at 77% (2023: 61%), compared to the prior year. These margins remain much higher than industry norms due to the licensing nature of Ceres' business model.

Other operating income

Other operating income decreased in the year to £2.8 million (2023: £3.7 million), which reflects the level of RDEC (R&D Expenditure Credits) claimed in the year compared to the prior year. This is driven by the lower underlying R&D spend as Ceres has passed peak investment in technology development.

Operating costs

Operating costs decreased to £74.3 million (2023: £76.6 million) as Ceres sustained its strategic investment

in core technologies to drive future growth, focusing on electrolysis-optimised stacks and industrial-scale

electrolyser systems. This was achieved alongside disciplined financial management, with a restructure

implemented in the second half of the year following peak investments in the delivery of key technology development milestones and focus on further commercialisation. Following the restructure, the average number of persons employed by the Group in the year decreased to 546 (2023: 590), ending the year with 478 employees.

Finance income and expense

Finance income decreased to £5.8 million (2023: £7.1 million), which reflects continued strong interest rates on our bank deposits and short-term investments in money-market funds with a lower average cash position. We maintain a stringent treasury policy to balance appropriate market returns with the security of funds including only high investment grade, and diversification of, financial institutions. Finance expense decreased to £0.4 million (2023: £1.3 million) mostly due to foreign exchange losses in 2023 of £0.8 million on currencies held in non-Sterling denominations which matured and therefore did not impact 2024.

Taxation (charge)/credit

Taxation charge increased to £2.4 million (2023: £0.4 million) and reflects payment of withholding taxes from overseas earnings. The increase can be attributable to the new manufacturing licence partners acquired in the year.

Loss for the financial year

The Group posted a loss of £28.3 million (2023: £54.0 million) for the period, which reflects the increase in revenue and gross margin compared to 2023.

Adjusted EBITDA

Adjusted EBITDA loss for 2024 decreased to £22.3 million (2023: £50.3 million). Adjusted EBITDA is a non-statutory measure and is detailed in the Alternative Performance Measures section in this review. The decreased loss is primarily due to the increased revenue explained above.

Reconciliation between operating loss and adjusted EBITDA

Management believes that presenting Adjusted EBITDA loss allows for a more direct comparison of the Group's performance against its peers and provides a better understanding of the underlying trading performance of the Group by excluding non-recurring, irregular and one-off costs. The Group currently defines Adjusted EBITDA loss as the operating loss for the year excluding depreciation and amortisation charges, share-based payment charges, unrealised losses on forward contracts and exchange gains/losses.

Total capital investments

Total capital investments comprises capital expenditure (plant, property and equipment) and capitalised development (intangible assets). In 2024, total capital investments declined to £6.7 million (2023: £14.7 million) mostly due to reducing investment requirements for our Manufacturing Excellence Centre in Redhill and a prioritisation of spend as we emphasised cash discipline during the year.

Working capital movements

During 2024, working capital increased by £15.7 million (2023: £10.0 million decrease). The two main factors were a £10.6 million increase in trade and other receivables, primarily due to significant partner invoice payments received in early 2025, and an £3.4 million net increase in contract assets and liabilities, reflecting revenue recognition from technology transfer activities with our new partners in 2024. Our continued focus on aligning pilot plant production with partner demand ensured that inventory levels remained stable.

Cash outflow

Cash outflow, comprising changes in cash, cash equivalents and short-term investments, totalled £37.5 million (2023: £42.4 million). This reduction reflects increased commercial activity and a focused approach to spending, partially offset by higher working capital requirements.

Cash, cash equivalents and short-term investments

The Group ends the financial year in a strong position with £102.5 million in cash, cash equivalents and short-term investments (2022: £140.0 million) to support future investment as we drive revenue growth, manage costs in a disciplined way and track towards profit and cash flow break-even.

Events after the balance sheet date

In February 2025, Bosch took the strategic decision to cease its development on SOFC cell and stacks for manufacture. Bosch stated that this decision is part of broader revised strategic direction and does not reflect Bosch's confidence in Ceres or our technology. Clearly we are disappointed that Bosch will discontinue its SOFC operations, but the impact on revenues will only be in the low single digit millions of euros for 2025.

Outlook

We end 2024 with a strong financial position and are well placed for significant growth in the future from existing

licensees and future partnership prospects in both the SOFC and SOEC markets. We continue to invest across the

business to build a sustainable competitive advantage in highly differentiated solid oxide technology, which offers our partners the potential to industrialise and commercialise stacks and systems with superior efficiencies, reliability and economics for the low-carbon power generation and green hydrogen markets.

Stuart Paynter

Chief Financial Officer