ITMPF - ITM Power Plc (ITMPF) Q2 2024 Earnings Call Transcript
2024-01-31 16:13:04 ET
ITM Power Plc (ITMPF)
Q2 2024 Results Conference Call
January 31, 2024 04:00 AM ET
Company Participants
Dennis Schulz - Chief Executive Officer
Andy Allen - Chief Financial Officer
Justin Scarborough - Head of Investor Relations
Simon Bourne - Chief Technology Officer
Presentation
Operator
Good morning, and welcome to the ITM Power plc Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and we'll publish responses where it's appropriate to do so.
Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Dennis Schulz, CEO. Good morning.
Dennis Schulz
Good morning, ladies and gentlemen, and welcome to our capital market update. In today's presentation, we want to cover 4 topics. Our 12-month plan, ITM's new vision and value statement and update on the market and on our strategic priorities, our half year 1 financial results and our improved full year guidance. Exactly 1 year ago today, we started our 12-month plan to make ITM a stronger, more focused and more capable company. We promised to concentrate on a narrowed product portfolio for standardization and volume manufacturing.
We set out to improve capital discipline by a stringent cost reduction program in the short term and by introducing professional processes for the future. We aimed at debottlenecking fabrication and testing and investing into the automation of several manufacturing steps. And we walk the talk. Today, I am delighted to announce the successful on-time completion of our plan. It's impressive what we've achieved in just 12 months. To highlight just a few of the total more than 180 distinct improvements.
We have rationalized our portfolio, seizing the production and support of older generation technologies. We have reduced the number of product variants by 75%. We have translated the world's leading PEM technology into volume products. We launched our 20-megawatt Poseidon module to address the market for larger plants whilst reducing complexity for integrators who seek to work with our technology.
The release of our hybrid stack makes available our state-of-the-art trident technology to customers operating older generation electrolyzers, offering them a material efficiency improvement of 10%. And we have substantially enlarged our product compliance reach and pursued an asset-light market entry into the U.S. We achieved a significant cost reduction and fundamentally tightened the rigor applied to capital spend. We reduced headcount by over 30%, whilst professionalizing our engineering capabilities and processes, especially with regards to design freezes to operate in unison with other areas of the company such as procurement and manufacturing. We have also put in place a more robust quality and process management system and strengthen compliance and validation.
Our strict quality over quantity policy has driven down failure rates in production. We have visibly improved our project performance and delivery credibility, which is being acknowledged by our customers. The sale of our 50% share in our joint venture motor fuels freed up GBP 28 million of previously ring-fenced capital, which we directed back to our core business. We have also achieved the planned progress in automation of a number of manufacturing steps. This has enabled enhanced bit quality and consistency along with shortened build times and reduced manufacturing costs. We will, of course, continue to introduce automation in a controlled way after new equipment has been validated....
ITM Power Plc (ITMPF) Q2 2024 Earnings Call Transcript