Hydrogen Cleantech Investment Opportunity - Investor Pitch Deck February 2022 Developing Hydrogen Powertrain Solutions for the Automotive ...
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Hydrogen Cleantech Investment Opportunity
Developing Hydrogen Powertrain Solutions for the Automotive, Aerospace, Marine, and Distributed Power Industries
Investor Pitch Deck
February 2022
Confidential
Jovian®
Jovian
Massive Market Opportunity
Viritech’s mission is to be the leading developer of hydrogen powertrain solutions for the Automotive, Aerospace, Marine, and Distributed Power Industries
Reversing climate change is mission critical for the planet… Lithium batteries on their own cannot provide the solution – and with supply
chains challenged, lithium prices have been soaring…
Global Electrification is happening…
Hydrogen will be an essential part of the new energy solution and hydrogen
National grids are rapidly becoming greener, and abundant Green Hydrogen fuel cells will be used in combination with batteries to solve these challenges…
is on the horizon…
Hydrogen powertrains are already superior for applications where power
Storing electricity for off-grid, mobile applications will be one of the key requirements, range and weight are critical – such as heavy transport, aviation
challenges… and high-performance cars…
Hydrogen powertrains for mobile applications is a massive market opportunity… 2
Hydrogen Market Forecasts
Hydrogen’s moment is here at last…
After decades of doubts, the gas is coming of age…
Economist 9th October 2021
McKinsey’s report for the Hydrogen Council forecasts:
More than US$300 billion of investment in the hydrogen
economy by 2030, based on objectives already announced by
governments
By 2050, hydrogen will power >400 million passenger
vehicles, 20 million trucks, 5 million buses, and provide 18% of
the world's energy needs
Bank of America believes that by 2050 the global market for
hydrogen power and derivative technologies will reach US$11 trillion
Next Move Strategy Consulting forecast that the Global Hydrogen
Fuel Cell Vehicle Market will experience a CAGR of 49.8% during the
period 2021-2030 and be valued at over US$850 billion by 2030
Mordor Intelligence estimate the global market for commercial
vehicles was valued at US$719 billion in 2020 with a forecast CAGR of
over 5% over the next decade to US$1.17 trillion – the market subset
for powertrains can be expected to be c.30% of this total
Morgan Stanley projects a total addressable market of US$1.5 trillion
for battery and hydrogen powered autonomous aircraft by 2040
Hydrogen Energy
Station 3
Our Solution
Viritech chose the Apricale® Hypercar, as the perfect development platform for its
family of hydrogen powertrain solutions, because it required optimisation of every
component, in terms of weight, size and performance
Patent pending technologies flowing from the Apricale into Viritech’s family of
powertrain solutions for wider applications include, the Tri-Volt™ Energy
Management System (EMS) and Graph-Pro™ Structural Composite Pressure Vessels
Traditionally fuel cells have been used on vehicles as range extenders to recharge
batteries in transit. Tri-Volt fundamentally changes this by constantly managing and
balancing onboard energy from a fuel cell stack, battery and the vehicle’s kinetic
energy, delivering significant efficiencies in terms of vehicle performance and
hydrogen consumption, while reducing lithium content by up to 90%
Similarly, Graph-Pro changes the dynamics of storing hydrogen by enabling the
pressure vessel to be used as a structural member of a chassis, aircraft, or vessel,
significantly reducing weight and saving space
Early adoption of Viritech’s hydrogen powertrains is expected in high performance
vehicles, light and heavy goods vehicles, and propellor/fan driven aircraft, with
marine vessels, and heavy equipment, such as trains, construction, agriculture, and
mining expected to follow
Passenger vehicles will be slower to adopt hydrogen powertrains, due to the
current cost of fuel cells and lack of hydrogen infrastructure, but fuel cell costs will
fall rapidly over the next decade and the necessary hydrogen infrastructure is on
the horizon
Apricale
4
Business Model
The Automotive industry is undergoing unprecedented transformation,
with OEMs facing existential challenges as they seek to transition from
fossil fuels to electric vehicles
To adapt to these rapidly changing market requirements, OEMs and Tier
1 suppliers will need to work with technology innovation partners, able to
deliver new disruptive technologies. The winners in this space will have
the opportunity to reap huge financial rewards
Based at MIRA in Nuneaton, with access to R&D facilities and industrial-
scale engineering resources used by many of the world's major
automotive manufacturers, Viritech is developing disruptive engineering
solutions for the automotive, aerospace, marine, and distributed power
industries, within timelines that OEMs and Tier-1s cannot achieve
With an F1-derived engineering culture, focussed on agile innovation,
Viritech’s business model is to design, develop and license proprietary
hydrogen powertrain technologies to global OEMs and Tier-1 suppliers,
to generate high margin, recurring revenues
Viritech Team at Horiba-MIRA
5
Reference Designs – releasing a series of Graph-Pro – designing and developing a
stunning and widely acclaimed designs for ground-breaking, patent-pending, composite
structural pressure vessel design for
hydrogen powered vehicles and aircraft
Progress hydrogen storage, optimising weight and
space requirements on vehicles, aircraft and
Team – assembling a world class marine vessels – the UK Government funded
engineering team at MIRA in the UK focussed Advanced Propulsion Centre (APC) estimates
on deliverable engineering solutions, and a the UK automotive sector alone will have
strong corporate team based in London demand for c.400,00 composite hydrogen
pressure vessels p.a. by 2035
‘Mule-1’ Vehicle – building Viritech’s first
hydrogen powered test vehicle, which runs Tri-Volt – creating a patent pending Energy
In just 14-months since launching in January daily as a systems development platform – Management System (including hardware and
watch the video software), which fundamentally changes the
2021, with c.£1.25m of capital investment, way fuel cells are used in mobility, delivering
important fuel efficiencies, enhanced vehicle
Viritech has achieved remarkable progress… Apricale – progressing the initial concept
performance and c.90% reduction in the use
design released in January 2021 to a fully
of lithium
engineered design ready for prototype
production in Q2 2022, with the first version
Electronics – to support rapid development
of the powertrain due to commence testing in in its electronics department, Viritech has set
‘Mule-2’ in April 2022 up an in-house PCB production facility
Jovian – developing the concept design for a Aviation Powertrain – working on a
hydrogen HGV, based on a derivative version powertrain for light aircraft, which will ground
of the Apricale powertrain, which will be run run in 2022 and commence air trials in 2023
in ‘Mule-3’ (HGV) in H2 2022
BAC – developing a Niche Vehicle Network-
supported feasibility design study for a
hydrogen powertrain for a Mono Supercar
6
Hydrogen Powertrains
Viritech’s mission is to be the world’s leading developer of fuel cell-based hydrogen powertrains for the automotive, aerospace, marine, and distributed
power industries
Energy Store
Hydrogen COPV
Front Motor
Rear Motor
Thermal System
Fuel Cell System
DC/DC Converter 7
Commercial Partners
In its first year, Viritech’s primary focus was on building engineering operations at MIRA and rapid product development, to establish its position as the
go-to provider of hydrogen powertrain solutions for global OEMs and Tier-1 suppliers
In 2022 the focus on commercial engagement is increasing, targeting first revenues in H2 2023
Commercial Development Plan – in 2022 Haydale Graphene Industries (Supplier) BAC Mono (Customer)
Viritech is seeking to establish MoUs with In September 2021, Viritech signed an MoU On 26th January 2022, BAC issued a press
commercial partners in the UK, Europe, with Haydale (world leaders in the release confirming they are working with
Japan, Korea and importantly, the US, functionalisation of graphene and other Viritech on the development of a hydrogen
categorising partnerships into 3 categories: nanomaterials), as its long-term, technical powertrain for their highly acclaimed Mono
partner for the development of its patent Supercar
Suppliers – including major fuel cell
pending Graph-Pro, structural pressure
manufacturers, electric motor The significance of this announcement is that
vessel technology
manufacturers, and technical partners the UK’s prestigious niche vehicle
The UK Government funded Advanced manufacturers of high-performance sports
Customers – potential licensees or JV
Propulsion Centre (APC) forecasts that by cars are expected to be early adopters of
partners for Viritech’s proprietary
2035 the UK will require 400,000 carbon hydrogen powertrains
technologies
pressure vessels to meet the demands of
MIRA (Supplier)
Strategic Partners – potential vehicle production
In April 2021, Viritech put a Framework
investors with aligned business
In 2022, Viritech will be progressing Agreement in place with MIRA which
objectives
commercial discussions with major pressure provides engineering support for its major
vessel manufacturers, with the aim of projects, including a joint project to deliver a
establishing an MoU to create a global fleet of 20-100 hydrogen HGVs for trials in
manufacturing and distribution partnership in the UK from 2023
2023
8
Key Verticals
Niche-Vehicles – The Apricale Hypercar will go into low volume
production from H2 2023 with key technical partners to be
announced in May 2022 and production set to commence in H2
2023. Further high-end, low volume vehicles are expected to follow
the Apricale program
Discussions are taking place with a European manufacturer
interested in using the Apricale chassis and powertrain to build its
own hydrogen Hypercar or Supercar derivative
The BAC Mono project was announced in January in anticipation of
the imminent demise of the internal combustion engine (ICE),
recognising that the weight penalty of battery EV powertrains is
incompatible with the performance objectives of niche sportscar
manufacturers – other manufacturers in this sector are expected to
be early adopters of Viritech’s hydrogen powertrains
Structural Pressure Vessels – Under the brand Graph-Pro, Viritech
is developing its patent pending designs for Type-4&5 structural
pressure vessels, with the first prototype to be tested on ‘Mule-2’
from April 2022
The Type-4 (linered) design is scheduled to be ready for early
manufacturing in H1 2023 and the Type-5 (linerless) design available
by 2024
The commercial potential for these designs across the automotive,
aerospace and marine industries, is expected to be significant and
Viritech expects to create a JV with a global manufacturing and
distribution partner to exploit this opportunity from 2023 onwards
Tellar
Tellaro
Tellaro 9
o
Key Verticals
Energy Management Systems (EMS) – Tri-Volt, is a patent pending,
sector re-defining EMS for hydrogen powertrains, combining software and
hardware to deliver higher performance, while using less H2 and
reducing lithium content by c.90%
The Automotive Electronic Control Unit (ECU) market is a US$44 billion
market which is forecast by Mordor Intelligence to grow at a CAGR of
c.6% over the next 10-years. A significant part of this market is currently
based on spark ignition, which will largely disappear with the demise of
the internal combustion engine (ICE), and energy management systems
for hydrogen powertrains can be expected to become a significant part of
the ECU market in future
As a result, Viritech expects Tri-Volt to be a significant future source of
licensing revenues from OEMs and Tier-1s – with the potential to licence
the technology directly or to form a JV with one of the major Tier-1s,
which dominate the global ECU market
Heavy Transport & Equipment – Heavy transport will be one of the early
adopters of hydrogen powertrains, due to the issues of mass-
compounding problems presented by battery-only solutions, which will
directly impact vehicle load capacity and operating revenue
In 2022, Viritech is prioritising development of its HGV powertrain, with its
HGV ‘Mule-3’ being the forerunner of a fleet of test vehicles to be built in
conjunction with MIRA for road trials in the UK from H2 2023
Viritech intends to license this powertrain widely to OEMs, while retaining
the option to develop its Jovian Reference Design, if a commercial
partner can be identified
Jovian 10Key Verticals
Aviation – Aviation, where weight, power output and range are
critical, will be another early adopter of hydrogen powertrains. In
2022 Viritech will develop a powertrain for aircraft, with the aim of
ground-running in 2022 and testing in a light aircraft in H1 2023
The market for aviation hydrogen powertrains will include new build
and the retro-fit market, given the longevity of aircraft, and Viritech
expects to licence this technology to aircraft manufacturers and
service organisations
Marine – Marine will be another major opportunity for hydrogen
powertrains, due to the density of water, which requires significant
energy to propel a hull through. As with all applications which
require consistent high levels of power output, batteries are not a
suitable solution on their own
As with aviation, the market for marine hydrogen powertrains will
include new build and the retro-fit
Distributed Power – To date, Viritech’s engagement in this sector
has been focussed on lobbying for the development of hydrogen
infrastructure and Viritech has an active dialogue with both
hydrogen producers and service station operators (e.g., Viritech was
responsible for introducing Octopus Hydrogen to MIRA’s recently
announced project to build a solar powered Green Hydrogen plant)
Longer term opportunities for Viritech in this sector include
hydrogen powertrains for applications such as mining and improved
technology for hydrogen refuelling
Tellar
Apricale
Tellaro 11
oFinancial Projections Skywolf 12
Financials/Use of Proceeds
Viritech’s budget for 2021 was £1.1m, which drove remarkable progress
For 2022, a ‘Base’ budget of £3 million has been set (which is expected to be covered by this round), together
with a more aspirational ‘Stretch’ budget which will require a further £5m to be raised later in 2022
As outlined in the project plans below, the ‘Base’ budget covers the ongoing development of Graph-Pro and Tri-
Volt, as well as development of ‘Mule-2’ which will be used to develop the powertrain platform for the Apricale
Building the XP1 prototype of the Apricale and the ‘Mule-3’ HGV, will require the additional capital to be raised,
which is scheduled for June in a round targeted to Family Offices and Institutional Investors
Looking beyond 2022, a substantially larger raise of c.£20-30m is planned for H1 2023 to cover ongoing
development in 2023/4, with strategic investment and/or a public listing among the options
R&D tax credits are built into Viritech’s budget assumptions, but potential Grant Funding is not. However, following
a recent award from the Niche Vehicle Network for the BAC Mono program, Grant Funding may become a
meaningful future source of funding for Viritech’s ongoing R&D
132022 Financial Projections
(Base Scenario*)
Summary Profit and Loss Account - Year End 31 Dec Summary Cash Flow Forecast - Year End 31 Dec Balance Sheet as at 31 Dec
Financial Year FY22 Financial Period/Year FY22 Financial Year FY22
£ £ £
Revenue Inflows Fixed Assets 118,945
Vehicles (Apricale) - Vehicles (Apricale) - Current Assets
Licensing - Licensing - Other Current Assets 29,434
Contracting/Consulting - Contracting/Consulting - R&D Tax Debtor 335,702
Total Revenue - Capital Raise 3,000,000 Cash 67,297
R&D Tax Credits 133,922 Current Assets 432,433
Cost of Sales - Total Inflows 3,133,922
Gross Profit - Current Liabilities 33,577
Gross Profit Margin 0.0% Outflows
COGS - Net Assets 517,801
Overheads Staff Costs and Consultants 1,096,184
Staff Costs and Consultants 1,049,683 R&D Costs 1,192,144 Capital & Reserves
R&D Costs 1,068,642 Other Overheads 1,129,652 Share capital 4,207,185
Other Overheads 955,726 Capital Expenditure - Profit and Loss (3,689,384)
Total Overheads 3,074,050 VAT Payments/Credits) (326,526) Total Capital & Reserves 517,801
Total Outflows 3,091,453
EBITDA Profit/(Loss) (3,074,050)
R&D Tax (Credit) (335,702) Net Cash Flow 42,469
Depreciation 41,976 Opening Cash 24,828
Profit/(Loss) After Tax (2,780,324) Closing Cash 67,297
*Assumes £3m of capital raised in 2022, which would enable continuing development of Tri-Volt and Graph-Pro, but delay some the Apricale program – see ‘Base’ Projects
142022 ‘Base’ Projects ©Viritech Ltd 2022 15
3-Year Financial Projections
(Stretch Scenario**)
Summary Profit and Loss Account - Year End 31 Dec Summary Cash Flow Forecast - Year End 31 Dec Balance Sheet as at 31 Dec
Financial Year FY22 FY23 FY24 Financial Year FY22 FY23 FY24 Financial Year FY22 FY23 FY24
£ £ £ £ £ £ £ £ £
Revenue Inflows Fixed Assets 118,945 174,094 197,743
Vehicles (Apricale) - 4,500,000 9,000,000 Vehicles (Apricale) - 5,400,000 10,800,000 Current Assets
Licensing - - 1,500,000 Licensing - - 1,800,000 Other Current Assets 29,434 29,434 29,434
Contracting/Consulting - - 750,000 Contracting/Consulting - - 900,000 R&D Tax Debtor 1,665,427 2,002,754 2,392,896
Cash 4,444,945 17,385,665 13,236,645
Total Revenue - 4,500,000 11,250,000 Capital Raise 13,000,000 20,000,000 -
Current Assets 6,139,806 19,417,853 15,658,974
R&D Tax Credits 133,922 1,665,427 2,002,754
Cost of Sales - 2,700,000 4,800,000 Total Inflows 13,133,922 27,065,427 15,502,754
Current Liabilities (180,330) 118,802 42,232
Gross Profit - 1,800,000 6,450,000
Gross Profit Margin 0.0% 40.0% 57.3% Outflows
Net Assets 6,439,080 19,473,145 15,814,486
COGS - 3,240,000 5,760,000
Overheads Staff Costs and Consultants 1,096,184 1,444,672 1,942,924
Capital & Reserves
Staff Costs and Consultants 1,049,683 1,395,888 1,877,314 R&D Costs 6,042,699 6,903,901 9,284,979 Share capital 14,207,185 34,207,185 34,207,185
R&D Costs 5,277,087 6,036,258 8,118,095 Other Overheads 2,569,652 3,891,539 2,849,390 Profit and Loss (7,768,105) (14,734,040) (18,392,699)
Other Overheads 2,155,726 3,265,693 2,403,794 Capital Expenditure - 151,200 151,200 Total Capital & Reserves 6,439,080 19,473,145 15,814,486
Total Overheads 8,482,495 10,697,838 12,399,204 VAT Payments/Credits) (994,730) (1,506,606) (336,718)
Total Outflows 8,713,805 14,124,706 19,651,775
EBITDA Profit/(Loss) (8,482,495) (8,897,838) (5,949,204)
R&D Tax (Credit) (1,665,427) (2,002,754) (2,392,896) Net Cash Flow 4,420,117 12,940,720 (4,149,021)
Depreciation 41,976 70,851 102,351 Opening Cash 24,828 4,444,945 17,385,665
Profit/(Loss) After Tax (6,859,045) (6,965,935) (3,658,659) Closing Cash 4,444,945 17,385,665 13,236,645
**Assumes at least £8m of capital raised in 2022 and a further £25m raised to cover 2023/4 - see ‘Stretch’ Projects
16‘Stretch’ Projects ©Viritech Ltd 2022 17
Board Timothy Lyons An experienced, successful, Fintech entrepreneur with a background in investment banking
and a lifelong passion for engineering, Timothy’s vision for Viritech stems from his belief that
the world’s transition to Green Hydrogen will be vital to the long-term sustainability of the
CEO/Founder planet
Matt Faulks With a background in motorsport and low volume sports car, Matt founded TDF in 2009,
which specialised in development projects for motorsports and automotive customers,
including Formula One Management and BAC. His wide range of engineering skills, includes
CTO/Co-Founder leading expertise in the development of vehicle control systems and mechatronics integration
Ben Reid Ben is a founder and the CEO of Aspremont, the CEO of Safe Solvents (Europe) Ltd., and
a Board member of ORP/Freehand. He has an exceptional record as a business strategist,
with a record of delivering successful business models for early-stage, disruptive
NED/Corporate businesses. Ben advises Viritech on all aspects of business strategy and commercial
scale-up
Development
Graham Eves Graham spent his early career with GKN, developing GKN's international operations and
commercialising and licensing its technology, before helping to establish AIM. He was
then responsible for bringing AB Dynamics to AIM in 2013, remaining as a member of the
Independent Ned Board until recently. Graham is also on the Board of Haydale Graphene Industries
18Creating Scalable, Hydrogen Powertrain Solutions for a
Greener World
19Disclaimer
This document has been prepared by Viritech Ltd. (Viritech), and the If you have received this document and are not a relevant person, you
information contained in it has not been independently verified. No must return it immediately. Any investment or investment activity to
liability is accepted, and no representation, warranty, or undertaking, which this document relates is available only to relevant persons and
express or implied, is or will be made by Viritech, for any information, will only be engaged with relevant persons.
projections, or any of the opinions contained herein, or for any errors,
omissions, or misstatements. Viritech makes no representations or Recipients of this document in jurisdictions outside the UK should
warranties (express or implied) concerning the matters contained inform themselves about and observe any applicable legal
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This document is only available to parties or individuals who: (i) have
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20Contact
www.viritech.co.uk W1, N17
invest@viritech.co.uk MIRA Technology Park
Watling Street,
/company/viritech Nuneaton
Warwickshire, CV10
0TU
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