Half Year 2026 Invinity Energy Systems Ltd Earnings Call

September 22, 2026

Operator: In listen only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to Jonathan Marren, CEO. Good afternoon, sir.

Speaker #1: This is 99 Questions are encouraged and could be submitted at any time by the Q&A tab situated on the right-hand corner of your screen.

Speaker #1: Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it's appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll, and I'd like to hand you over to Jonathan Marin, CEO. Good afternoon, sir.

Speaker #2: Thank you very much, indeed. Good afternoon, everybody. We're also joined, of course, by my two colleagues. Matt Harper and Adam Howard. We're all here in London, delighted to be talking to you together.

Jonathan Marren: Thank you very much. Indeed, good afternoon, everybody. We are also joined, of course, by my two colleagues, Matt Harper and Adam Howard, we are all here in London. Delighted to be talking to you together. We have about an hour session here, aim is to go through the presentation in about half an hour and leave enough time for some Q&A. We have already had some really interesting questions come through, so want to leave as much time as possible to go through those and answer all of your questions. Recognizing that on this call, we have a number of people who have been with us for many, many years, but also some who are new to the story. So there are a few slides to go through, just introducing the business and where we are up to, and then we will get into the interim results themselves.

Speaker #2: We've got about an hour's session here, aimless to go through the presentation in about half an hour, leave enough time to serve Q&A. We've already had some really interesting questions come through, so I want to leave as much time as possible to go through those and answer all of your questions.

Speaker #2: So recognizing that on this call we have a number of people who've been with us for many, many years, but also some who are new to the story.

Speaker #2: So there's a few slides to go through, just introducing the business and where we're up to, and then we'll get into the interim results themselves.

Speaker #2: But one thing I'd like to do for whether you are new to the story or whether you have been here for some time is just to talk about how we are describing the business at the moment.

Jonathan Marren: But one thing I would like to do for whether you are new to the story or whether you have been here for some time, is just to talk about how we are describing the business at the moment. The reason being is that we thought long and carefully about how we tell people who we are, and how we differentiate ourselves from the competition. That is not just to investors, but that is also to the commercial space. What is reassuring is, I think as you sort of hopefully hear the message now, we are getting very good traction as we talk about this, particularly with the commercial customers. The reason being is that we are able to say what we offer is a flexible energy storage solution. The reason flexibility is important is that markets are changing rapidly.

Speaker #2: And the reason being is that we thought long and carefully about how we tell people who we are, and how we differentiate ourselves from the competition.

Speaker #2: And that's not just to investors, but that's also to the commercial space. And what's reassuring is, I think, as you sort of hopefully hear the message now, we're getting very good traction as we talk about this particularly with commercial customers.

Speaker #2: And the reason being is that we're able to say, and what we offer is a flexible energy storage solution. And the reason flexibility is important is that markets are changing rapidly.

Jonathan Marren: By that, with electrification, the requirements from the grid are changing rapidly. There is a real risk that if you do buy an asset that does not have flexibility, that it could quite quickly become a stranded asset. That obviously is quite a big danger. There are examples of that across markets. A particular one is in the UK, where five or 6 years ago, a lot of half an hour and one-hour batteries were put onto the grid, changing a particular revenue stream, and quite quickly when that became saturated, they became stranded. We have a flexible battery solution. It is flexible because there are no restrictions on cycles, and it will last for 30 years. Particularly as you start to talk about things such as the power requirements for AI data centers, that is a really difficult and changing market.

Speaker #2: And by that, with electrification, the requirements from the grids are changing rapidly. And there's a real risk that if you do buy an asset that doesn't have flexibility, that it could quite quickly become a stranded asset.

Speaker #2: And that obviously has quite a big danger. There are examples of that across markets. A particular one is in the UK, where five or six years ago, a lot of half an hour and one hour batteries were put onto the grid, chasing a particular revenue stream and quite quickly when that became saturated, they became stranded.

Speaker #2: We have a flexible battery solution. It's flexible because there is no restrictions on cycles, and it will last for 30 years. And particularly, as you start to talk about things such as the power requirements for AI data centers, that is a really difficult and changing market.

Speaker #2: And when we are offered to offer a solution that really can change with the requirement from such an AI data center, that's really attractive.

Jonathan Marren: When we are offering a solution that really can change with the requirement from such an AI data center, that is really attractive. When we talk to industrial businesses who are designing these solutions in, that is really, really exciting. We do that across the globe, across all markets, but we do so on a localized basis. That is really quite attractive as well, because you are seeing across international markets a drive for localization which is being valued. That is particularly true across the US, it is true across Europe, it is true across Japan and other markets. We will come to the UK a little bit, and there is obviously some good questions on cap and floor, and I will comment on that and we will be covering that in more detail. If you look about our technology as well, we really are a proven mechanical technology.

Speaker #2: So when we talk to industrial businesses who are designing these solutions in, that is really, really exciting. So we do that across the globe, across all markets, but we do do it on a localized basis.

Speaker #2: And that is really quite attractive as well, because you're seeing across international markets a drive for localization, which is being valued. And that's particularly true across the US, it's true across Europe, it's true across Japan, and other markets.

Speaker #2: And we'll come to the UK a little bit, and there is obviously some good questions on cap and floor, and I'll sort of comment on that, and we'll be covering that in more detail.

Speaker #2: So if you look at our technology as well, we really are a proven mechanical technology. And mechanical, I say that because if you look at the assets that are typically put onto the grid, over the last 100, 150 years, those are all mechanical assets.

Jonathan Marren: Mechanical, I say that because if you look at the assets that are typically put onto the grid, over the last 100, 150 years, those are all mechanical assets. They are a gas asset, they are a coal-fired power station, they are a nuclear asset. What they are not necessarily is something that was really designed to go in a mobile phone or an EV, and then has been pushed forward and put onto the grid. Therefore, just like a car, if something goes wrong with that car, you can get in there and you can change that component part. You can change the wheels, you can change the oil. With us, it might be a valve that is not working, it might be a pump or a pipe. That is quite easy to go in and resolve.

Speaker #2: They're a gas asset. They're a coal-fired power station. They're a nuclear asset. What they're not necessarily is something that was really designed to go in a mobile phone or an EV and then has been sort of pushed forward and put onto the grid.

Speaker #2: And therefore, just like a car, if something goes wrong with that car, you can get in there and you can change that component part.

Speaker #2: You can change the wheels. You can change the oil. With us, it might be a valve that isn't working. It might be a pump or a pipe.

Speaker #2: That's quite easy to go in and resolve. If you have something such as a mobile phone here, typically when that goes wrong, you're throwing the entire cell away.

Jonathan Marren: If you have something such as a mobile phone here, typically when that goes wrong, you are throwing the entire cell away. Typically that can come with some quite complicated ramifications when you look to replace that across a wider field. Therefore, we are more akin to perhaps a pumped hydro in a box. Pumped hydro separates your power and your energy storage in terms of your water that is used for gravity and pushed downhill through a turbine to generate power. For us, we do that via chemical reaction, but ultimately it is the same. For a user looking at this, it is not a new technology at all. The flow batteries were first patented in the 1880s. NASA did some good work accelerating that forward in the 1970s, and we have been working on commercializing this since the merger in 2020.

Speaker #2: And typically that can come with some quite complicated ramifications. When you look to replace that across a wider field. And so therefore we are more akin to perhaps a pumped hydro in a box and pumped hydro separates your power and your energy storage in terms of your water that's used with gravity and pushed downhill through a turbine that generates the power.

Speaker #2: For us, we do that via a chemical reaction, but ultimately it's the same. And so for a user looking at this, it's not a new technology at all.

Speaker #2: And then look back, flow batteries for first patented in the 1880s. NASA did some good work accelerating that forward in the 1970s, and we've been working on commercializing this since the merger in 2020.

Speaker #2: And so when you talk to a commercial business, this isn't a new step forward per se. This is technology that's been established. It just hasn't had the investment to date to accelerate it as fast as other technologies.

Jonathan Marren: When we talk to a commercial business, this is not a new step forward per se. This is technology that has been established. It just has not had the investment to date to accelerate it as fast as other technologies. When we talk through what we are doing in some of the other areas, they get much more comfortable on that. Of course, we offer that in two separate areas. We offer that in a containerized solution, ENDURIUM, but also we are able to talk about the FlexBase solution at the bottom. What you will note is I have not talked about LDES, and I have not talked about non-lithium, and that is deliberate. Because actually, that flexibility means we can offer different types of duration storage, not just LDES that forms part of it. Of course, we are very good at doing that, and we are competitive in that area.

Speaker #2: And then when we talk to what we are doing, some of the other areas, they get much more comfortable in that. And of course, we offer that in two separate areas.

Speaker #2: We offer that in a containerized solution in durian, but also we're able to talk about the flex-based solution at the bottom. Now, what you'll note is I haven't talked about LS, and I haven't talked about non-lithium.

Speaker #2: And that's deliberate, because actually that flexibility means we can offer different types of duration storage, not just LS that forms part of it. And of course, we're very good at doing that, and we are competitive in that area.

Jonathan Marren: Of course, we are very good at doing that, and we are competitive in that area.

Speaker #2: But that flex-based project is a two and a half hour system. That's not long duration, but actually that's a use case that works very well for us.

Jonathan Marren: But that FlexBase project is a 2.5-hour system. That is not long duration, but actually that is a use case that works very well for us. Then in terms of non-lithium, I have never liked saying we were a non-lithium business. You do not go and buy a, you do not try and sell someone an SUV by telling them it is not a performance sports car. Tell them exactly what you are. I think that is really important. So yeah, that flexibility storage really resonates. Then when I talk to customers, we move on to talk about the track record. Because actually, having those 2,000 batteries installed in the field and working for our customers is a real differentiator. We very recently announced that we had 10 gigawatt hours of power dispatched from our batteries that we were very proud of.

Speaker #2: And then in terms of non-lithium, I've never liked saying we were a non-lithium business. You don't go and buy a you don't try and sell to someone an SUV by telling them you're not a performance sports car.

Speaker #2: Tell them exactly what you are. And I think that's really important. So that flexibility storage really resonates. And then when I talk to customers, we move on and talk about the track record.

Speaker #2: Because actually having those 2,000 batteries installed in the field and working for our customers is a real differentiator. We very recently announced that we have 10 gigawatt hours of power dispatch from our batteries that we're very proud of.

Speaker #2: And you'll see in the interim yesterday, that's notched onto 11 already in growing rapidly. And that's important because all of the projects we talk to now, they typically send in technical consultants to review where we are.

Jonathan Marren: You will see in the interims yesterday, that is notched on to 11 already and growing rapidly. That is important because all of the projects we talk to now, they typically send in technical consultants to review where we are. They need the track record, they need the data. These assets are looking to go on the field for 30 years plus, they have to work, and they have to work in a robust way. Then the other point is that demonstrable cost reduction. Because ultimately, we can have characteristics of a battery that are attractive, but if it is not at the right cost, at some point you will not get through the financial gateways. The work we have been doing to bring costs down, is really opening up that market.

Speaker #2: They need the track record. They need the data. These assets are looking to go on the field for 30 years plus. They have to work, and they have to work in a robust way.

Speaker #2: And then the other point is that demonstrable cost reduction. Resultantly, we can have characteristics of the battery that are attractive, but if it's not at the right cost at some point, you won't get through the financial gateways.

Speaker #2: And the work we've been doing to bring costs down is really opening up that market. And when finally we talk about where we are indicatively from a price point, we are having some really interesting and accelerated conversations that we've had and had before.

Jonathan Marren: When finally we talk about where we are predictively from a price point, we are having some really interesting and accelerated conversations that we have not had before. So just on this slide, we have 180 or so employees. To some people that sounds quite a lot, to others, not very many at all. A lot of those are working on that cost-down approach. It is a product that ultimately is steel, it is plastics, it is liquid, and it is component parts. But actually, as you iterate those together, there is about 60 or 70 work streams the team is working on to take costs out. We are putting the resource and the investment into that to make sure that we can step ahead of all of our competition, and that really is important for us. So a reminder of why we win. It really is that unlimited cycling.

Speaker #2: So just on this slide, we have 180 or so employees. To some people, that sounds quite a lot. To others, not very many at all.

Speaker #2: A lot of those are working on that cost-down approach. It is a product that ultimately is steel, it is plastics, it is liquid, and it's component parts.

Speaker #2: But actually, as you iterate those together, there is about 60 or 70 workstreams that the team is working on to take costs out. And we are putting the resource and the investment into that to make sure that we can step ahead of all of our competition.

Speaker #2: And that really is important. So a reminder of why we win. It really is that unlimited cycling. That's where we focus on. The unlimited cycling, the lack of degradation, the fact it will last for 30 years.

Jonathan Marren: That is where we focus on, the unlimited cycling, the lack of degradation, the fact it will last for 30 years. Those are characteristics which are really, really valued by customers. We do talk about the fact that there is no thermal runaway risk. That is one of the reasons, but not the only reason why we are involved in the FlexBase project. But increasingly, as you look across the world, that lack of thermal runaway really does make a difference from a permitting perspective. Anecdotally, you will see the Moss Landing lithium battery fire that closed the highway in California a number of years ago, is back on fire over the weekend. These can be really unstable assets. For us to be able to talk about the fact there is no thermal runaway risk makes a real difference from that planning perspective.

Speaker #2: Those are characteristics which are really, really valued by customers. We do talk about the fact that there is no thermal runaway risk. That is one of the reasons, but not the only reason why we're involved in the flex-based project.

Speaker #2: But increasingly, as you look across the world, that lack of thermal runaway really does make a difference from a permitting perspective. Anecdotally, you'll see the moss landing lithium battery fire that closed the highway in California.

Speaker #2: A number of years ago, it's back on fire over the weekends. These are really and can be really unstable assets. And for us, to be able to talk about the fact there's no thermal runaway risk makes a real difference in that planning perspective.

Speaker #2: We in terms of manufacturing, what we're able to do is localize that so that we can take advantage of those local programs as well.

Jonathan Marren: In terms of manufacturing, what we are able to do is localize that so that we can take advantage of those local programs as well. Domestic content is really important, and I think there is a question coming up on that as to whether we can take advantage of that, particularly in the US, and I will not prejudge the answer to that now, so we will come onto that in a little bit. What is really, really important to me is how our customers think about us. 11 gigawatt hours is ultimately the result that you cannot hide away from, and that will be a growing number. What is really important to me is that customer journey from order through to pre-delivery, through to delivery and then commissioning, and then looking after customers afterwards.

Speaker #2: So domestic content is really important. And I think there's a question coming up on that as to whether we can take advantage of that, particularly in the US.

Speaker #2: And I will not prejudge the answer to that matter. We'll come on to that in a minute.

Speaker #1: Great.

Speaker #2: What is really, really important to me is how our customers think about us. And you'll never figure what ours is ultimately the result, but you can't hide away from, and that will be a growing number.

Speaker #2: But what's really important to me is that customer journey from order through to pre-delivery, through to delivery and then commissioning, and then looking after customers afterwards.

Speaker #2: Dr. Craig Writer there, who is from VATAS, that is the site just outside of San Diego where there is our battery connected to solar outside a casino powering that casino.

Jonathan Marren: Dr. Craig Reiser there, who is from Viejas, that is the site just outside of San Diego where there is our battery connected to solar, outside a casino, Pechanga Resort Casino. That asset is being worked extremely hard. That was recently commissioned, and Indian Energy are really relying on our battery to be providing the work at that site. Look at the testimonial on the site. We have no stronger fan of the business than Indian Energy, and that is really, really positive. One of the reasons why the funder of that project, the California Energy Commission, the CEC, is again looking to push projects our way. You saw that from the announcement quite recently of Pacific Steel Group. They were a funder of that. As you can see, the results of the track record on that battery have been really positive towards us.

Speaker #2: That asset is being worked extremely hard. And that was recently commissioned. And Indian Energy are really relying on our battery to be providing the work at that site.

Speaker #2: And look at the testimonial on the site. We have no stronger fan of the business than Indian Energy. And that's really, really positive. One of the reasons why the funder of that project, the California Energy Commissioner CEC, is again, looking to push projects our way.

Speaker #2: And you saw that from the announcement quite recently of Pacific Steel Group. They were a funder of that. And as you can see, there was the results of the track record on that battery have been really positive towards us.

Speaker #2: So we pushed the team very hard. We do go the extra mile to look after our customers. It is a small industry, and they do talk.

Jonathan Marren: We push the team very hard. We do go the extra mile to look after our customers. It is a small industry, and they do talk, and having that word-of-mouth referral is really, really important to us. From an international perspective, it is interesting how this slide has developed over the last couple of years. We do have a version of this that shows where we were 2 years ago. This looks like quite an empty map 2 years ago. Now you can see we have a significant number of projects in the US, particularly on the West Coast. Again, reference to the California Energy Commission that has supported to us. These are projects that are either working in the field at the moment or where we have signed contracts and are delivering.

Speaker #2: And having that word of mouth referral is really, really important to us. From an international perspective, it's interesting how this slide has developed over the last couple of years.

Speaker #2: We do have a version of this that shows where we were two years ago. And this looks like quite an empty map two years ago.

Speaker #2: Now you can see we have a significant number of projects in the US, particularly on the West Coast. Again, reference to the California Energy Commission that supported to us.

Speaker #2: These are projects that are either working in the field at the moment or where we have signed contracts and are delivering. So that sits across both the East and West Coast in the US.

Jonathan Marren: That sits across both the East and West Coast in the US, but also across Europe as well. You will see we have the FlexBase project, which we will talk about in a few moments' time. Copwood energy system, which will be commissioned very soon. The connections for Grid has just been finalized. At the moment, we are ready to go. We are just waiting for others to do their work. Then of course, on the far right, Spencer Energy. That is a site that has been in the desert in Australia for a number of years now, and is probably almost our longest and best performing asset in some really harsh environments. Again, when someone says, "Well, look, how do you operate in the heat?" We can show them the data there, and that is really important. From a global manufacturing base, we continue to support the UK through Bathgate and Motherwell.

Speaker #2: But also across Europe as well. You'll see we have the flex-based project, which we'll talk about in a little in a few moments' time.

Speaker #2: The Copperwood Energy System, which will be commissioned very soon. We just released the connection to the grid has just been finalized at the moment.

Speaker #2: We're ready to go. We're just waiting for others to do their work. And then, of course, on the far right, Spencer Energy. That's a site that's been in the desert in Australia for a number of years now and is probably our almost our longest and best performing asset into some really harsh environments.

Speaker #2: So again, when someone says, well, how do you operate in the heat? We can show them the data there. And that's really important. From a global manufacturing base, we continued to support the UK through Bathgate and Motherwell.

Jonathan Marren: From a global manufacturing base, we continue to support the UK through Bathgate and Motherwell.

Speaker #2: Flex-based project will continue to support those two factories. We'll come on to Captain Floor in a moment and how that potentially could change that or otherwise.

Jonathan Marren: FlexGen project will continue to support those two factories. We will come onto cap and floor in a moment and how that potentially could change that or otherwise. The US, as you have seen from where those projects are, do require US content, and that is one of the reasons why we will have the factory up and running by the end of this year, and that will be really important in servicing those markets. Well spread across, making sure that we use China from a low-cost perspective to deliver the heavy industry inputs. That is the steel container, that is the tanks. Then elsewhere, we can put the balance of system, we can put the electrolyte, and of course, stacks manufactured locally. Then finally, I have briefly mentioned about the cost before, and this is not the first time I have mentioned it.

Speaker #2: The US, as you've seen from where those projects are, do require US content. And that's one of the reasons why we will have the factory up and running by the end of this year.

Speaker #2: And that will be really important in servicing those markets. So well spread across, making sure that we use China from a low-cost perspective to deliver the sort of the heavy industry inputs.

Speaker #2: That's the steel container. That's the tanks. And then sort of elsewhere, we can put the balancer system. We can put the electrolyte and, of course, stacks manufactured later.

Speaker #2: And then finally, I've briefly mentioned about the cost before. And this isn't the first time I've mentioned it. We recently went back and just had a look, actually, about how much cost we took out of that VS3 product during its journey from when we first deployed a system to site, which was really around the Scottish Water days.

Jonathan Marren: We recently went back and just had a look actually about how much cost we took out of that VS3 product during its journey from when we first deployed a system to site, which was really around the Scottish Water days, to the last system that we sent out, which was December 2024. Actually, we took about 60% of the product cost out on that VS3 journey. Now remember, that was with some effort on cost down, but not a significant effort on cost down because a lot of the R&D work was going towards Mistral, now ENDURIUM. That came from development of supply chain and from scale that went through that. But in a product which really was tough to iterate the cost because you did have the six factories within a container and everything that went with that.

Speaker #2: To the last system that we sent out, which was December 2024. And actually, we took about 60% of the product cost out on that VS3 journey.

Speaker #2: Now, remember, that was with some effort on cost down, but not a significant effort on cost down. Because a lot of the R&D work was going towards Mistral, who now enduring.

Speaker #2: But that came from development of supply chain and from scale that went through that. But in a product which really was tough to iterate the cost, because you did have that six batteries within the container and everything that went with that.

Speaker #2: And to be able to do that 60% with quite a hard product to try and take cost out of, you can see how enduring, which is designed specifically to take cost out of, that we can go much faster and much further.

Jonathan Marren: To be able to do that 60% with quite a hard product to try and take cost out, you can see how ENDURIUM, which is designed specifically to take cost out, that we can go much faster and much further. So that sharp line there where you see that 66% cost reduction, we are going to be in that position for all the product we are shipping in early 2027. It looks like that cost reduction curve levels off, and that is only because of the steepness of that graph. We are still potentially looking at taking out a further 50% from that point through to 2030. The trajectory to get there opens up a very significant number of opportunities.

Speaker #2: So that's sharp line there where you see that 66% cost reduction we are going to be in that position for all the product we are shipping in early 2027.

Speaker #2: And that it looks like that cost reduction curve levels off. And that's only because of the steepness of that graph. We are still potentially looking at taking out a further 50% from that point through to 2030.

Speaker #2: And the trajectory to get there opens up a very significant number of opportunities. When we talk about those price points, we're going to really interesting reaction because they are most customers are very unaware that the Venadia flow battery industry is heading in this way.

Jonathan Marren: When we talk about those price points, we get a really interesting reaction because most customers are very unaware that the vanadium flow battery industry is heading in this way. A couple of anecdotes for you, and particularly one with Equans. Equans is our delivery partner on the FlexBase project. We have hired them to do the EPC work, but they were very keen to make sure that what they were getting involved with was robust in terms of the technology and the partner. They actually had some exposure to one of our projects in Europe already. The head of business development said to me, "Look, we did the due diligence, and the feedback we got back was that yours is the Rolls-Royce of vanadium flow batteries." By that he meant two things.

Speaker #2: A couple of anecdotes for you, and particularly one with Equans. Equans is our delivery partner on the flex-based project. We have hired them to do the EPC work.

Speaker #2: But they were very keen to make sure that what they were getting involved with was robust in terms of the technology and the partner.

Speaker #2: And they actually had some exposure to one of our projects in Europe already. And the head of business development said to me, look, we did the due diligence.

Speaker #2: And the feedback we got back was that yours is the Rolls-Royce of Venadian flow batteries. And by that, he meant two things. He meant the quality of the product and also he meant the price in terms of where we were, i.e., too expensive.

Jonathan Marren: He meant the quality of the product. He also meant the price in terms of where we were, i.e., too expensive. That for me, was fantastic feedback because he was talking about the quality of where we were with that VS3 product, but also the cost point, which he wasn't aware we'd taken a significant cost out of, and then talking through where we are actually getting to. This probably wasn't a, you have a much wider and deeper conversation with you. Also, maybe 6 months before that, someone who was in charge of power solutions for a data center business said about vanadium flow batteries in general, the best storage technology there is, the most expensive. Again, at that point in time, he wasn't wrong. A lot of the market commentators will say the same thing.

Speaker #2: And that for me was fantastic feedback because he was talking about the quality of where we were with that VS3 product. But also the cost points which he wasn't aware we'd taken that significant cost out of.

Speaker #2: And then talking through where we are actually going to, his comment was, look, we need to have a much wider and deeper conversation with you.

Speaker #2: And then also maybe six months before that, someone who was in charge of power solutions for data center business said about Venadian flow batteries in general, the best storage technology there is, the most expensive.

Speaker #2: And again, at that point in time, he wasn't wrong. A lot of the market commentators will say the same thing. They are not aware of where our price points are heading from the work that's particularly Matthew leading.

Jonathan Marren: They are not aware of where our price points are heading from the work that specifically Matt Harper is leading. I think when we get there and we start delivering that product and people are able to order that in size, I think we will have a very different position commercially than we're heading into at the moment. A really, really exciting place to be because of that work we're doing on costs and on performance. With that, I will hand over to Adam Howard to talk through numbers.

Speaker #2: And I think when we get there, and we start delivering that product and people are able to order that in size, I think we will have a very different position commercially than we're heading into at the moment.

Speaker #2: So a really, really exciting place to be because of that work we're doing on cost and on performance. And with that, I will hand over to Adam to talk through our numbers.

Speaker #3: Good afternoon. So starting off with the key financial highlights for the first half period, customer orders that we've signed there are up three times year on year.

Adam Howard: Good afternoon. Starting off with the key financial highlights for the H1 period. Customer orders that we've signed there are up 3 times year-on-year, to just over 30 MWh. Pretty important in terms of scale and what you'll start to see flowing through some of the financials as we go through later on. Order book as it stands today looking forward is just under 80 MWh inside. Obviously, that's excluding the FlexGen contract, but we're in the process of working through the final design and prototyping for 2028, 2029 deliveries. Gross loss down 60% year-on-year. I'll go through a bit of detail in a second as to what's driving that. We ended the H1 period with GBP 10 million cash, plus GBP 40 million inventory and deliver on those as increased orders for the H2. Profit and loss statement.

Speaker #3: And to just have a 30 megawatt hours, really important in terms of scale and what you'll start to see flowing through some of the financials that we go through later on.

Speaker #3: Audible because it sounds today looking forward is just under 80 megawatt hours in size. Obviously, that's excluding the flex-based contract through the process of working through the final design and prototyping for 28, 29 deliveries.

Speaker #3: Gross loss down 60% year on year. And it goes into a bit of detail in a second as to what's driving that. We ended the first half period with 10 million cash plus 40 million inventory.

Speaker #3: And to deliver on those as increased orders for the second half. So profit and loss statement, a little bit more detail here. So we increased our project and grant income to 1.7 million compared to 1.8 million in the first half period last year.

Adam Howard: A little bit more detail here. We increased our project and grant income to GBP 1.7 million compared to GBP 1.8 million in the H1 period last year. Clearly it's a H2 weighted set of numbers, but delivering it against signed orders there that we've taken in the H1. Within that, you'll see the commissioning of 4 projects, a small delivery and then the final completion of Copwood, our project in the UK, which will be the largest flow battery project in Europe. What you're seeing is the last half million recognized against that grant income there. In terms of the net loss, we are GBP 1.5 million reduction year-on-year to GBP 12 million. Really within that, the 2 factors is the increased R&D account spend that we've announced there to drive our product cost down.

Adam Howard: A little bit more detail here. We increased our project and grant income to GBP 1.7 million compared to GBP 1.8 million in the H1 period last year. Clearly it's a H2 weighted set of numbers, but delivering it against signed orders there that we've taken in the H1. Within that, you'll see the commissioning of 4 projects, a small delivery and then the final completion of Copwood, our project in the UK, which will be the largest flow battery project in Europe. What you're seeing is the last half million recognized against that grant income there. In terms of the net loss, we are GBP 1.5 million reduction year-on-year to GBP 12 million. Really within that, the two factors is the increased R&D account spend that we've announced there to drive our product cost down.

Speaker #3: So clearly, it's a second half weighted set of numbers. But delivering against signed orders there, that we've taken in the first half. Within that, you'll see in the commissioning of four projects.

Speaker #3: It's more delivery and then the final completion of Cockwood, our project in the UK, which would be the largest flow battery. And project in Europe.

Speaker #3: And what you're seeing is the last half a million recognized against that grant income so we are another one and a half million reduction year on year to 12 million.

Speaker #3: And really within that, two factors. It's the increased R&D headcount spend that we've announced there to drive our product cost down. And Johnson's run through where we are against plan on that.

Adam Howard: Jonathan's run through where we are against plan on that and that's the result of that investment. Secondly, we've now completed the joint development agreement with Siemens Gamesa. There's less recovery year on year net off against that R&D number. There's the two factors there driving the bottom line and supporting our product cost journey. Next slide, please. A bit more detail here on the margins. Two concepts to explain here. First, the product cost refers to our direct costs, this is excluding overhead and warranty. Second is the trailing 12 months. Looking over the last 12 months, we've announced for each of those periods. What you're seeing there is a pickup in that gross margin over time, and also delivering on increasing product margins.

Speaker #3: And that's a result of that investment. And then second, we've now completed the joint balance agreement with Gamesa. And so there's less recoveries year on year.

Speaker #3: That's a lot against that R&D number. So those are the two factors there driving the bottom line. And supporting our product cost journey. Next slide, please.

Speaker #3: So a bit more detail here on the margins. So sort of two concepts to explain here. First, the product cost referred to our direct cost.

Speaker #3: So it's excluding overhead and warranty. And second, this is trading 12 months. So looking over the last 12 months, we've announced the breach of those periods.

Speaker #3: And what you're seeing there is a pickup in that gross margin over time. And also delivering on increasing product margins. And really, that's because as we've got more volume going through the factory, we're absorbing more of those factory overheads.

Adam Howard: Really that's because as we've got more volume going through the factory, we're absorbing more of those factory overheads and we're seeing that pattern pick up. The other factor is then our first ENDURIUM shipments as a composition of our sale moves from VS3 into ENDURIUM, and we've really delivered on our last VS3 sale now. We're seeing a pickup in those margins. Those are two key points. The last one just to mention there is we've got a fairly significant reduction in our warranty costs year on year, down from 0.9 to 0.2. That's really driven by two things. First, improving component performance, and then also reduced product costs, which is feeding through to the lower provision there. They're the key drivers of what's happening on the gross margin line. Next slide, please.

Speaker #3: And we're seeing that pattern pick up. The other factor is then our first enduring shipments as a composition of our sale moves from VS3 into enduring and we've really delivered on our last VS3 sale now.

Speaker #3: We're seeing a pickup in those margins. So those are two key points. And then the last one just to mention there is we've got a fairly significant reduction in our warranty cost year on year.

Speaker #3: Down from 0.9 to 0.2. And that's really driven by two things. First, improving component performance. And then also reduced product cost, which is feeding through to the lower provision there.

Speaker #3: Those are key drivers of what's happening on the gross margin line. Next slide, please. So going into the balance sheet here, it's obviously two factors that impact cash.

Adam Howard: Going into the balance sheet, here's obviously two factors that impact cash from the cash we reported on the balance sheet, and then second, the inventory, which is unwinding the delivery against those H2 orders. As I say, finishing the year there with a better cash position of inventory of GBP 40 million, and then the cash addition to that of GBP 10 million. It goes in a solid cash position to support our ongoing concern. Two other key points within here. We talked about inventory, but you're seeing there a capitalization of some of our product costs for the completion of the joint development agreement with Siemens Gamesa. We're then capitalizing some of that work that's going into Austro. You're seeing that there within on the balance sheet. Next slide, please, Jim. I'll hand across on the core customer segments.

Speaker #3: One, the cash we're reporting on the balance sheet. And then second, the inventory, which is unwinding the delivery against those second half orders. And as I say, finishing the year there, with a cash position of inventory of 40 million.

Speaker #3: And then the cash in addition to that of 10 million. And to go in a solid cash position to support our going concern. Two other key points within here.

Speaker #3: So we talked about inventory. You're seeing there a capitalization of some of our product costs. For the completion of the joint development agreement with Gamesa, we then capitalizing out some of that work that's going into Austro.

Speaker #3: You're seeing that there within on the balance sheet. Next slide, please. And I'll hand the cross to Matt on the core customer segments.

Speaker #4: Great. Thanks so much. And great to be with you this afternoon. So look, now that we've got cost to the right place, and we're getting increasingly proof from our customers that we're delivering against their expectations, we're sharpening our focus on what we're exactly our products deliver, the greatest value.

Matt Harper: Great. Thanks so much. Great to be here with you this afternoon. Look, now that we've got costs to the right place, we're getting increasingly proof from our customers that we're delivering against their expectations. We're sharpening our focus on where exactly our products deliver the greatest value. One of the biggest initiatives that we've gone through over the last three months has been a deep dive, combining work by our internal team with some external consultants to understand unequivocally where we are the best storage solution so that we can focus our commercial efforts in that area. The three questions that we've gone out and asked ourselves and asked our customers and asked the market is what operational problems are our customers working to solve? What financial benefit do they derive from applying storage to those problems?

Speaker #4: One of the biggest initiatives that we've gone through over the last three months has been a deep dive combining work by our internal team with some external consultants to understand unequivocally where we are the best storage solutions so that we can focus our commercial efforts in that area.

Speaker #4: The three questions that we've gone out and asked ourselves and asked our customers and asked the market is, what operational problems are our customers working to solve?

Speaker #4: What financial benefit do they derive from applying storage to those problems? And where does Invinity's solutions solve those problems better than anything else that's available in the market?

Matt Harper: Where do Invinity solutions solve those problems better than anything else that is available in the market? The clear answer comes back that there are three segments where we dramatically outperform other solutions. Standalone co-located LDES projects, commercial and industrial sites, especially where there is already co-generation involved, and in more emerging markets, the need for buffering and bolstering AI infrastructure. We will go to the next slide. The AI one is particularly exciting to us. In front of meter LDES case and the C&I case, we have been working on those extensively over the last couple of years. AI is new, and one of the things that we had to spend a lot of time understanding is what exactly the load profile looks like for these data centers and how we would fit into those.

Speaker #4: And the clear answer comes back that there are three segments where we dramatically outperform other solutions. Standalone co-located, LDIS projects, commercial and industrial sites, especially where there's already cogeneration involved, and in more emerging markets, the need for buffering and bolstering AI infrastructure.

Speaker #4: We'll go to the next slide. The AI one is particularly exciting to us. The in front of meter LDIS case and the CNI case, we've been working on those extensively over the last couple of years.

Speaker #4: AI is new. And one of the things that we had to spend a lot of time understanding is what exactly the load profile looks like for these data centers and how we would fit into those.

Speaker #4: I think what we've been learning is that there's kind of these two different sets of AI infrastructure facilities. And therefore, electrical loads onto the facilities.

Matt Harper: I think what we have been learning is that there are two different sets of AI infrastructure facilities and therefore electrical loads onto the facilities. One is where you have got inference data centers. These are the data centers that are doing relatively repeatable tasks. Things like people are asking what are the football scores from yesterday? The AI is pulling those together and presenting them with a very understandable, easily understood format. Separate from that are training workloads, and these are the sort of much more complex questions, like for example, if you were to ask an AI agent to develop a model to predict tomorrow's football scores, which is something that involves learning, that involves iteration, that involves the coordination of every one of the processor units that are built on each one of these individual sites. Those training sites have a far more stochastic electric load going into them.

Speaker #4: One is where you've got inference AI data centers. These are the data centers that are doing relatively repeatable tasks, things like people are asking what are the football scores from yesterday?

Speaker #4: And the AI is pulling those together and presenting them in a very understandable, easily understood format. Separate from that are training workloads. And these are the sort of much more complex questions.

Speaker #4: Like for example, if you were to ask an AI agent to develop a model to predict tomorrow's football scores, which is something that involves learning that involves iteration, that involves the coordination of every one of the processor units that are built on each one of these individual sites.

Speaker #4: Those training sites have a far more stochastic electric load going into them. And the graph you see on this slide is showing 50 minutes' worth of electricity flow onto one of those sites.

Matt Harper: Those training sites have a far more stochastic electric load going into them. The graph you see on this slide is showing 15 minutes worth of electricity flow onto one of those sites. You see those loads fluctuating from near zero to near 100% overnight. That is a load profile that is extremely difficult to integrate onto the electric grid. It is something that utilities around the world are struggling with to integrate effectively onto their existing systems. In both cases, because of going back to John's point around flexibility, because we have the ability to discharge our batteries over and over again on limited cycles without shortening their life, it means that we can address those training workloads very capably. Even going back to those inference workloads, a lot of those sites are being built out with on-site generation, whether that is solar or wind.

Matt Harper: The graph you see on this slide is showing 15 minutes worth of electricity flow onto one of those sites. You see those loads fluctuating from near zero to near 100% overnight. That is a load profile that is extremely difficult to integrate onto the electric grid. It is something that utilities around the world are struggling with to integrate effectively onto their existing systems. In both cases, because of going back to John's point around flexibility, because we have the ability to discharge our batteries over and over again on limited cycles without shortening their life, it means that we can address those training workloads very capably. Even going back to those inference workloads, a lot of those sites are being built out with on-site generation, whether that is solar or wind.

Speaker #4: And you see those electric loads fluctuating from near zero to near 100% over another load. That's a low profile that is extremely difficult to integrate onto the electric grid.

Speaker #4: It's something that utilities around the world are struggling with to integrate effectively onto their existing systems. But in both cases, because of going back to Jon's point around flexibility, because we have the ability to discharge our battery over and over again, unlimited cycles, without shortening their life, it means that we can address those training workloads very, very capably.

Speaker #4: Even going back to those inference workloads, whereas a lot of those sites are being built out with on-site generation, whether that's solar or wind, on average, you're looking at very, very high cycle counts to be able to support those loads most effectively with batteries.

Matt Harper: On average, you are looking at very high cycle counts to be able to support those loads, most effectively with batteries. That means as you compare our batteries with what a lithium-ion cell would be able to do by comparison, the fact that we have very long lifetime without the kind of augmentation you would see through a lithium array means that we have some significant advantages. What do the advantages mean in terms of the numbers? Well, look, this is important. This is a mass market, GBP 45 billion around the world. When we look at the benefits that we have over incumbents, on the inference side, we have got about a 15% advantage on the total cost of delivering electricity to these sites, a 12% advantage on the training side.

Speaker #4: That means as you compare our batteries with what a lithium-ion cell would be able to do by comparison, the fact that we have very, very long lifetime without the kind of augmentation you would see through lithium array means that we have some significant advantages.

Speaker #4: One of the advantages mean in terms of the numbers, well, look, this is important. This is a massive opportunity. 45 billion pounds around the world.

Speaker #4: And when we look at the benefit that we have over incumbents, on the inference side, we've got about a 15% advantage on the total cost of delivering electricity to these sites, about a 12% advantage on the training side.

Speaker #4: So in both cases, something clear evidence where we are materially better than the incumbents in a market segment that is experiencing massive and sustained growth.

Matt Harper: So in both cases, clear evidence where we are materially better than the incumbents in a market segment that is experiencing massive interest today. Fortunately, within our product development portfolio, one of the most exciting projects is exactly related to that data center development. Many of you have heard us talk extensively over the last few months about our project with FlexBase. It is really hard to underscore the scale of this project. I mean, 1.5 gigawatt hours is a big number. But when you get on site and you see the magnitude that this facility is being built, it is staggering to understand really the depth and impact that this battery is going to have. Because these numbers are just numbers, worth putting some reference point around them. The average electricity load into the city of Zurich is about 0.4 gigawatts.

Speaker #4: Fortunately, we've got within our product portfolio, one of the most exciting projects is exactly related to that AI data center development. Many of you have heard of talk extensively over the last few months about our project with Flexbase.

Speaker #4: It's really hard to under score the scale of this project. I mean, 1.5 gigawatt hours is a big number. But when you get on site and you see the magnitude of this facility being built, it is staggering to understand really the depth and impact that this battery is going to have.

Speaker #4: Worth, because these numbers are just numbers, worth putting some reference point around them. The average electricity load into the city of Zurich is about 0.4 gigawatts.

Speaker #4: So this is one and a half times that load. This is a massive piece of infrastructure that will be a critical asset on the Swiss grid.

Matt Harper: This is 1.5 times that load. This is a massive piece of infrastructure that will be a critical asset on the Swiss grid. There is the degree to which we are able to deliver this battery, deliver that energy into the data center reliably and make sure that this can be an asset that the Swiss grid uses to continually optimize its operation rather than having a challenge to integrate that data center load is really the reason that our technology is improving to be that buffer between the data center's needs and what the grid can provide over the course of many decades. We are going through the engineering phase of this project right now.

Speaker #4: And there is the degree to which we are able to deliver this battery, deliver that energy into the data center reliably, and make sure that this can be an asset that the Swiss grid uses to continue to optimize its operation rather than having a challenge to integrate that data center load is really the reason that our technology is improving to be that buffer between the data center's needs and what the grid can provide over the course of many decades.

Speaker #4: We're going through the engineering phase of this project right now. We're really happy that we've continued to meet a lot of the milestones, the stage gates that are part of that development process.

Matt Harper: We are really happy that we have continued to meet a lot of the milestones, the stage gates that are part of that development process, and looking forward to the final steps towards the fulfillment phase, which we understand is going to begin through the middle of next year. Adam, back to you on the commercial pipeline.

Speaker #4: And looking forward to the final steps towards the fulfillment phase, which we understand is going to begin through the middle of next year. Adam Beck, do you want to commercial pipeline?

Speaker #3: Yeah, a little bit more detail here on the pipeline to inform the numbers. We split the pipeline into three sections. First being our order block.

Adam Howard: A little bit more detail here on the pipeline and to inform the numbers. We split the pipeline into three sections. First being our order book, so those are signed and conditional orders. The second being framework. Essentially this is master service agreements or MOUs signed with customers. They are going through final financing and contracting milestones and the development pipeline. This is really projects that have fit into a scheme with Invinity technology, or submitted for a license with Invinity's technology. It does give a sense of that, essentially on an undressed basis, that is just under 13 gigawatt hours across our pipeline at the moment, and we are not including there the qualified pipeline that hasn't gone through some of those milestones. Then how does that sit in terms of an outlook base?

Speaker #3: So those are signed and conditional orders. And the second being framework. So essentially, this is massive service agreements or MOUs signed with customers that are going through final financing and contracting milestones.

Speaker #3: And the development pipeline. So this is really projects that have bid into a scheme with Invinity Technology, or submitted for a license with Invinity Technology.

Speaker #3: Just to give a sense of that essential on this basis, that's just another 13 gigawatt hours across our pipeline at the moment. We're not including the qualified pipeline that hasn't gone through some of those milestones.

Speaker #3: And how does that sit in terms of an output basis? Well, over the next three years of '26 to '28, you can see the bulk of that is sitting across North America.

Adam Howard: Well, over the next three years of 2026 to 2028, you can see the bulk of that sitting across North America. That is really driven by the incentives in that market at the moment. So the 30% investment tax credit, the 10% production tax credit, the $45 per kilowatt. There is a lot of incentives that build up to about a 50% tax incentive for local manufacturing in that market. You have seen us talk to setting up our local plant next year to deliver on that. Then by sector on the right-hand side there, it is really split across two main areas of focus. One being renewable developers and utilities, so predominantly there are larger schemes, like LDES capital, that are being pushed out in North America at the moment, and the data center space, and we talked a little bit early on to the use case there.

Speaker #3: That's really driven by the incentives in that market at the moment. So the 30% investment tax credit, the 10% production tax credit, the $45 per kilowatt hour, there's a lot of incentives that point up to about a 50% tax incentive for local manufacturing in that market.

Speaker #3: And you've seen us talk to setting up our local plant next year to deliver on that. And so then by sector on the right-hand side there, it's really split across two main areas of focus.

Speaker #3: One being renewable developers and utilities. So predominantly, there's larger schemes like the cap and floor that are being pushed out in North America at the moment.

Speaker #3: And then data center space. And we've looked a little bit early on to the use case there. So what does that translate to in terms of numbers?

Adam Howard: What does that translate to in terms of numbers? We have given a bit more color there. This is now on a risk basis for sales. Essentially we are risking our order book there at 9%, the frameworks at P50, and then everything within the development pipeline there at P10. This gives you a sense of how the pipeline looks on an outlook basis, both kind of across those three factors. That all boils down into a 5x increase in share there to just under 5% of the flow battery market. We based that on independent analysis by Benchmark Mineral Intelligence there, who are the industry-leading forecaster in this market.

Speaker #3: We've given a bit more color there. This is now on a risk basis. For sales, so essentially we are risking our order book there at 9%.

Speaker #3: The frameworks at P50. And then everything within the development pipeline there at P10. This gives you a sense of how the pipeline looks with an outlook basis, both kind of across those three factors.

Speaker #3: That all boils down into a 5X increase in share there to just earn the 5% of the flow battery market. We based that on independent analysis by benchmark there, who the industry leading forecaster in this market.

Speaker #3: So it gives you a sense of what that actually means in terms of the whole flow battery market today on the numbers we're putting out there, which are relatively heavily risked in order for us to give some confidence behind what we're putting out there.

Adam Howard: To give you a sense of what that actually means in terms of the whole flow battery market today on the numbers we are putting out there, which are relatively heavily risked in order for us to give some confidence behind what we are putting out there.

Speaker #1: Thank you. And the risk of going into Q&A early, the P50, P10?

Matt Harper: Thank you. At the risk of going into Q&A early, the P50, P10?

Speaker #3: Yeah, so essentially P50, 50% risk rating, P10 at 10% risk rating. So we're just within the order book there, we get some slippage there to give them timely revenue recognition.

Adam Howard: Yeah. P50, 50% risk weighting, P10 at 10% risk weighting. So within the order book there, we get some slippage there given timing of revenue recognition within the frameworks. That is ultimately a function of when these customers are delivering that financing on their projects and in the final bucket there you have some development risk as they close out the last milestones on their project slides. So you get a little bit more visibility there in terms of how we put this development pipeline.

Speaker #3: Within the frameworks, that's ultimately a function of when these customers are delivering that financing on their projects. And with the final bucket there, you've got some development risk as they close out the last milestones on their project sites.

Speaker #3: A little bit more visibility there in terms of how we're putting together the pipeline.

Speaker #1: Thank you. Okay. So last slide, then we'll jump into Q&A. We can justify what you say that we are a leader on this as a technology business in this space from the track record we've got and the commercial validation.

Matt Harper: Thank you. Okay, so last slide and then we will jump into Q&A. We can justifiably say that we are a leader as a technology business in this space from the track record we have got and the commercial validation. What is important is that we scale this, we scale it rapidly to become commercially very successful, and the whole team here is focused on that. We are a technology business, but actually we really want to be a high-value, commercially scaled business, and that is where we are all driving to, but with extremely strong foundations of good technology with a product at the right cost. And that cost competitiveness is really what is driving those bigger opportunities.

Speaker #1: What is important is that we scale this. We scale it rapidly to become commercially very successful. And the whole team here is focused on that.

Speaker #1: We are a technology business, but actually we really want to be a high-value commercially scale business. And that's where we're all driving to. But with extremely strong foundations of good technology with a product at the right cost.

Speaker #1: And that cost competitiveness is really what is driving those bigger opportunities. If you look across that map of projects deployed or being deployed, if you exclude that flex-based project, almost all of the projects sat within our pipeline are at bigger scales.

Matt Harper: If you look across that map of projects deployed or being deployed, if you exclude that FlexGen project, almost all of the projects sat within our pipeline are at bigger scales than you see across that entire map, and that is just evidence of the ability for us to move into those bigger projects. But it comes from the work we have done on cost and we will continue to do on cost. We continue to iterate on that to make sure that we do remain competitive in that area.

Speaker #1: And you see across that entire map. And that's just evidence of the ability for us to move into those bigger projects. But it comes from the work we've done on cost.

Speaker #1: And we'll continue to do on cost. We continue to iterate on that to make sure that we do remain competitive in that area. The market is also moving hugely in our favor.

Adam Howard: The market is also moving hugely in our favor. That requirement for flexibility is not something that we necessarily talked about a couple of years ago. Or if we did, it was not really spoken to as regularly to us. Now, when we talk to those who are commissioning systems, flexibility is really valued by them, and there are a limited number of assets that can offer that. And that commercial momentum we are beginning to see, I think, does validate our strategy, recognizing there is a lot more to do to transition that pipeline into firm orders and make sure that as we look at our revenue forecast in the year to come, we start the year, as we are beginning to see now, with a significant amount of that future revenue already backed into commercial orders. So thank you.

Matt Harper: The market is also moving hugely in our favor. That requirement for flexibility is not something that we necessarily talked about a couple of years ago. Or if we did, it was not really spoken to as regularly to us. Now, when we talk to those who are commissioning systems, flexibility is really valued by them, and there are a limited number of assets that can offer that. And that commercial momentum we are beginning to see, I think, does validate our strategy, recognizing there is a lot more to do to transition that pipeline into firm orders and make sure that as we look at our revenue forecast in the year to come, we start the year, as we are beginning to see now, with a significant amount of that future revenue already backed into commercial orders. So thank you.

Speaker #1: That requirement for flexibility isn't something that we necessarily talked about a couple of years ago, or if we did, it wasn't nearly as spoken to as regularly to us.

Speaker #1: Now when we talk to those who are commissioning systems, flexibility is really valued by them. And there are a limited number of assets that can operate that can offer that.

Speaker #1: And so that commercial momentum of beginning to see, I think, does validate our strategy, recognizing there was a lot more to do to transition that pipeline into firm orders and make sure that as we look at our revenue forecast in the year to come, we start the year as we're beginning to see now with a significant amount of that future revenue already backed into commercial orders.

Speaker #1: So thank you.

Speaker #2: That's great. Thanks very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen.

Operator: That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. As you can see, we have received a number of questions throughout today's presentation. Joe, if I could just hand back to you to chair the Q&A with the team, and I'll pick up from you at the end.

Speaker #2: Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via Invinity dashboard.

Speaker #2: As you can see, we have received a number of questions about today's presentation. And Joe, if I could just hand back to you to chair the Q&A with the team, and I'll pick up from you at the end.

Speaker #1: Brilliant. Thanks, Lily. So delighted to see that a lot of questions coming through. I'm going to start there's a few here I think relating to the financials, which I don't want we start with you on.

[Company Representative] (Invinity): Brilliant. Thanks, Lily. So, delighted to see a lot of questions coming through. I'm going to start, there are a few here, I think, relating to the financials, which, Adam, I'll probably start with you on. I think it's between Invinity, cash and customer receipts. Can you give a bit more detail on how we're going to manage cash over the next 12 months?

[Company Representative] (Invinity Energy Systems): Brilliant. Thanks, Lily. So, delighted to see a lot of questions coming through. I'm going to start, there are a few here, I think, relating to the financials, which, Adam, I'll probably start with you on. I think it's between Invinity, cash and customer receipts. Can you give a bit more detail on how we're going to manage cash over the next 12 months?

Speaker #1: There's I think it's sort of between inventory, cash, and sort of customer receipts. Can you give a bit more detail on how we're going to manage cash over the next 12 months?

Speaker #3: Yeah. So as we mentioned earlier, we're looking at cash runway as a function of both cash on the balance sheet and then the inventory, which is work we've completed in the first half for delivery against our order book.

Adam Howard: Yeah. So as we mentioned early on, we'll be looking at cash runway as a function of both cash on the balance sheet and then the inventory, which is work we've completed in the H1 for delivery against our order book. So approximately half of that unwinding in the H2 for our deliveries there and the remainder early next year for our deliveries into 2027. That's really what's sitting behind there for the 12-month concern there within the interim statements in order to manage our cash runway.

Speaker #3: So perhaps in half of that unwinding in the second half for our deliveries there, and then the remainder at the early next year for our 12 deliveries into '27.

Speaker #3: And that's really what's sitting behind there for the 12-month going concern there within the interim statements. In order to manage our cash runway.

Speaker #1: Thanks. And there's a couple of questions here on pipeline. I'm just seeing there. Can you give a little bit more? I mean, Matt, I might come to you on this.

[Company Representative] (Invinity): There are a couple of questions here on pipeline that I'm just seeing there. Can you give a little bit more. Matt, I might come to you on this. When we talked about the 11-gigawatt hour frameworks, what sort of customers are we talking about here? Are we talking about people at which end of the spectrum of buying batteries are we talking about?

[Company Representative] (Invinity Energy Systems): There are a couple of questions here on pipeline that I'm just seeing there. Can you give a little bit more. Matt, I might come to you on this. When we talked about the 11-gigawatt hour frameworks, what sort of customers are we talking about here? Are we talking about people at which end of the spectrum of buying batteries are we talking about?

Speaker #1: When we talked about the 11 gigawatt-hour frameworks, what sort of customers are we talking about here? Are we talking about people at the sort of which end of the spectrum of buying batteries we're talking about?

Speaker #1: So within our 11, the question here says, within the 11 bit more insight into what actually sits within that? So what are those frameworks that people have signed?

Matt Harper: So within our

[Company Representative] (Invinity): The question here says, "Within the 11 gigawatt hours of the pipeline, can you give a bit more insight to what actually sits within that? So what are those frameworks that we can sign?

[Company Representative] (Invinity Energy Systems): The question here says, "Within the 11 gigawatt hours of the pipeline, can you give a bit more insight to what actually sits within that? So what are those frameworks that we can sign?

Speaker #3: Yeah, look, we've still got a healthy part of the business that's related to the firm meter developments that we've always there's always been the core of our business.

Matt Harper: Yeah, look, we have still got a healthy part of the business that is related to the firm year developments that has always been the core of our business. I think the big change over the most recent period is on the data center side. Obviously, getting the second phase of FlexBase into that part of our pipeline has been a big uptick. But I think you can appreciate, given the amount of interest in the data center segment globally, we have now got a lot of interest in what we can do for those data center operators, builders, constructors and so there are a large and growing number of other data center opportunities that are also part of that 11 gigs.

Speaker #3: I think the big change over the most recent period is on the data center side. Obviously, getting the second phase of flex-based into that part of our pipeline has been a big uptick.

Speaker #3: But I think you can appreciate given the amount of interest in the data center segment globally, we've now got a lot of inbound interest in what we can do for those data center operators, builders, constructors.

Speaker #3: And so there are a large and growing number of other data center opportunities that are also part of that 12 or 11 gates.

Speaker #1: Great. And that's actually another question here asking about flex-based. Do we see it as a one-off, or is it a?

[Company Representative] (Invinity): Great. There is actually another question here asking about FlexBase. Do we see it as a one-off, or is it a

[Company Representative] (Invinity Energy Systems): Great. There is actually another question here asking about FlexBase. Do we see it as a one-off, or is it a-

Speaker #3: No, look, we're laser-focused on getting that project right for that customer. And we're going through the development details to make sure that that as we enter this new market, that we're doing the right things for what those data center operators are going to need.

Matt Harper: No. Look, we are laser focused on getting that product right for that customer. We are going through the development details to make sure that as we enter this new market, we are doing the right things for what those data center operators are going to need. Our intention is that we will be able to turn that, or at least portions of that, into more of a repeated offering. We are able to offer some further sites down the road, really duplicate what we have learned and make sure that we can replicate it for other customers in other regions.

Speaker #3: Our intention is that we will be able to turn that or at least portions of that into more of a repeated offering. We're able to offer to further sites down the road, really duplicate what we've learned and make sure that we can replicate it for other customers in other regions.

Speaker #1: But I think just to follow on to that, the number one focus is that project in itself is extremely valuable to us. And the focus is entirely on getting that delivered.

Jonathan Marren: I think just to follow up that, the number one focus is that project in itself is extremely valuable to us.

Jonathan Marren: I think just to follow up that, the number one focus is that project in itself is extremely valuable to us. The focus is entirely on getting that delivered. That is a delivery cycle 2, 29, 30.

Jonathan Marren: The focus is entirely on getting that delivered. That is a delivery cycle 2, 29, 30.

Speaker #1: That is a delivery cycle to 29, 2030. The installation phase certainly starts in about a year or so's time. So the design and finalization of the integration work is the work being done now.

[Company Representative] (Invinity): Correct.

Adam Howard: The installation phase certainly starts in about a year or so's time. The design and finalization of the integration work is the work being done now. At some point in time, we can look to replicate that elsewhere. For the moment, we are absolutely focusing on that. That just opens up opportunities elsewhere as well. Back on that pipeline question as well, if you look what sits within this, we had a review relatively recently of some of the parts of the pipeline that don't necessarily percolate up. I was really reassured by just the number and breadth of deals that sit across that energy storage space. It is enormous, particularly in the US front. It is quite staggering to see what comes from it.

Jonathan Marren: The installation phase certainly starts in about a year or so's time. The design and finalization of the integration work is the work being done now. At some point in time, we can look to replicate that elsewhere. For the moment, we are absolutely focusing on that. That just opens up opportunities elsewhere as well. Back on that pipeline question as well, if you look what sits within this, we had a review relatively recently of some of the parts of the pipeline that don't necessarily percolate up. I was really reassured by just the number and breadth of deals that sit across that energy storage space. It is enormous, particularly in the US front. It is quite staggering to see what comes from it.

Speaker #1: At some point in time, we can look to replicate that elsewhere. But for the moment, we are absolutely focusing on that. That's just opens up opportunities elsewhere as well.

Speaker #1: So back on that pipeline question as well. If you look at what sits within this, we had a review relatively recently of some of the sort of the parts of the pipeline that don't necessarily pay me percolate up.

Speaker #1: And I was really reassured by just the number of reps of deals that sit across that AI data center space. It's enormous, particularly in the US front.

Speaker #1: It's quite staggering to see what comes from.

Speaker #3: Okay. And there's actually we've got basically the same question asked twice in the same way from two people that were in a minute of each other.

[Company Representative] (Invinity): Okay. We've got basically the same question asked twice in the same way from two people that were competing with each other. Can you just talk about, we've talked about the rest of the world's element in the geography. What does that actually mean? Where are we seeing the demand outside of North America and Europe and the UK? Where is that? Is it in China? Is it India? Where is it?

[Company Representative] (Invinity Energy Systems): Okay. We've got basically the same question asked twice in the same way from two people that were competing with each other. Can you just talk about, we've talked about the rest of the world's element in the geography. What does that actually mean? Where are we seeing the demand outside of North America and Europe and the UK? Where is that? Is it in China? Is it India? Where is it?

Speaker #3: Can you just talk about we've talked about the rest of the world's element in the geography. What does that actually mean? Where are we seeing the demand outside of North America and Europe and the UK?

Speaker #3: Where is that? Is it China? Is it India? Where is it?

Speaker #1: Well, look, this is a global marketplace. And we are what's 180-based being like a lot when you strip out those working on product developments as well.

Matt Harper: Well, look, this is a global marketplace. Whilst 180 may seem like a lot when you strip out those working on product development, it is a large market to cover with a relatively small commercial team that needs to cover not just front-end sales, but the sales engineering that sits beneath that. So we need to focus on core markets where we've got the expertise and the bandwidth. What's really interesting about China particularly is China has deployed more vanadium flow batteries than anywhere else in the world.

Jonathan Marren: Well, look, this is a global marketplace. Whilst 180 may seem like a lot when you strip out those working on product development, it is a large market to cover with a relatively small commercial team that needs to cover not just front-end sales, but the sales engineering that sits beneath that. So we need to focus on core markets where we've got the expertise and the bandwidth. What's really interesting about China particularly is China has deployed more vanadium flow batteries than anywhere else in the world.

Speaker #1: It is a large market to cover with a relatively small commercial team that needs to cover not just front-end sales, but the sales engineering that sits beneath that.

Speaker #1: So we need to focus on core markets where we've got the expertise and the bandwidth. What's really interesting about China, particularly, is China has deployed more vanadium flow batteries than anywhere else in the world.

Speaker #1: The price points that we are at or will be at shortly next year we think are probably below where the Chinese are selling their vanadium flow batteries.

Jonathan Marren: The price points that we are at, or will be at shortly next year, we think are probably below where the Chinese are selling their vanadium flow batteries. We also know from the tenders we've been involved in, such as FlexBase and other anecdotal evidence, that we think our batteries perform at better than a lot of that Chinese technology, if not all of it. So there is a potential for some really interesting opportunities within China. However, we need to make sure that we do approach that in a sensible way for all the reasons that I'm sure I don't need to go into to make sure that corporately we're positioned correctly there. India is an interesting market. India is very cost conscious, and rightly so, we are pushed on margins. This is a business where we have to make returns for our shareholders.

Speaker #1: And we also know from the tenders we've been involved in, such as Flexbase and other anecdotal evidence, that we think our batteries perform at better than a lot of that Chinese technology is, if not all of it.

Speaker #1: So there is a potential for some really interesting opportunities within China. However, we need to make sure that we do approach that in a sensible way for all the reasons that I'm sure I don't need to go into to make sure that corporately we're positioned correctly there.

Speaker #1: India is an interesting market. India is very, very, very cost-conscious. And rightly so, we are pushed on margins. This is a business where we have to make the turns for our shareholders.

Speaker #1: And typically, within India, a lot of businesses do chase very low, if not negative margin business to build market share and then hope they'll be able to generate a profit in years to come.

Jonathan Marren: Typically, within India, a lot of businesses do chase very low, if not negative margin business to build market share and then hope they'll be able to generate a profit in years to come. That is not a business model that we have really ever adopted or intend to adopt and don't need to adopt. So within India, we will look to cherry pick opportunities where we don't have to do that. I'm sure shareholders would support us in that. There are European projects which sit alongside the FlexBase one in terms of the scale and breadth of opportunities. There's a lot of opportunity there that we are only scratching the surface on. At some point in time, we will look a little bit broader towards Africa and elsewhere, but I think for now we'll be concentrating on those core markets.

Speaker #1: That is not a business model that we have really ever adopted or intend to adopt and don't need to adopt. So within India, we will look to cherry-pick opportunities where we don't have to do that.

Speaker #1: And I'm sure shareholders would support us in that. There are European projects which sit alongside the Flexbase one in terms of sort of scale and opportunities.

Speaker #1: There's a lot of opportunities there that we are only scratching the surface on as well. And at some point in time, we will look a little bit broader towards Africa and elsewhere.

Speaker #1: But I think for the moment, we're concentrating on those core markets.

Speaker #3: And there's a few questions on Flexbase. I think we've answered most of them. But there's one here about asking for a bit more specificity around the engineering and said you've said the engineering process on track.

[Company Representative] (Invinity): There's a few questions on FlexBase. I think we've answered most of them, but there's one here about asking for a bit more specificity around the engineering. You've said the engineering process is on track. Can you give any more detail on what that really means in terms of progress towards the start of the work?

[Company Representative] (Invinity Energy Systems): There's a few questions on FlexBase. I think we've answered most of them, but there's one here about asking for a bit more specificity around the engineering. You've said the engineering process is on track. Can you give any more detail on what that really means in terms of progress towards the start of the work?

Speaker #3: Can you give any more detail on what that really means in terms of progress towards the cycle?

Speaker #2: Yeah, sure. I mean, what I would say is that we were awarded that project on the basis of our track record and on the basis of the concept that we were able to deliver against the requirements that the customer had put forward in their RFP.

Matt Harper: Yeah, sure. What I would say is that we were awarded that project on the basis of our track record and on the basis of the concept that we were able to deliver against the requirements that the customer had put forward in their RFP. Within the next year, what we're going to be going through is a series of stage gates where we will have to deliver a sequentially more evolved version of what that engineering design looks like. Not only proving the concept works, not only proving that the commercial model works, but building out the actual set of orders, the actual set of components that are going to be installed into the basement of this data center. It's worth noting that is materially different from how we've delivered a lot of our products in the past.

Speaker #2: Within the next year, what we're going to be going through is a series of stage gates where we will have to deliver a sequentially more evolved version of what that engineering design looks like not only proving the concept works, not only proving that the commercial model works, but building out the actual set of orders, the actual set of components that are going to be installed into the basement of this data center.

Speaker #2: It's worth noting that that is materially different from how we've delivered a lot of our products in the past. Rather than a container that ships out of our factory, we're going to be shipping individual components out of our factory so that they can be fully integrated inside.

Matt Harper: Rather than a container that ships out of our factory, we're going to be shipping individual components out of our factory so that they can be fully integrated at site. Getting that done in a way that is supportive of the product itself while maintaining the performance, not only technical but also commercial, that we intend to achieve is something our customer needs to make sure that we're doing properly.

Speaker #2: Getting that done in a way that is supportive of the product itself, well, maintaining the performance, not only technical but also commercial, that we intend to achieve is something that we need our customer needs to make sure that we're doing properly.

Speaker #1: Okay. Thank you.

[Company Representative] (Invinity): Okay, thank you. The next point, and we had a lot of questions on this, I think people came armed to the call around cap and floor. There's a number of questions here saying that they've seen articles in the press, in The Sunday Times essentially saying that the market had some high expectations of the number of awards. Really asking, what's our view on what happened and our view on the chance of anything changing or not?

[Company Representative] (Invinity Energy Systems): Okay, thank you. The next point, and we had a lot of questions on this, I think people came armed to the call around cap and floor. There's a number of questions here saying that they've seen articles in the press, in The Sunday Times essentially saying that the market had some high expectations of the number of awards. Really asking, what's our view on what happened and our view on the chance of anything changing or not?

Speaker #3: The next point, and we had a lot of questions on this. I think people came armed to the call with around cap and floor.

Speaker #3: There's a number of questions here saying that they've seen articles in the press, in the Sunday Times, essentially saying that the market at some high expectations of a number of awards.

Speaker #3: I'm really asking, what's of you and what happened? And are you on the chance of anything changing or not?

Speaker #1: Okay. Thank you, Joe. I totally could come up to this soon. But there's an awful lot we can talk about here. And yeah, there are different views I've seen on how to approach this.

Jonathan Marren: Okay. Thank you, Giles. I was hoping to come onto this soon, but there is an awful lot we can talk about here and there are differing views I have seen on how to approach this. What is really interesting, and you saw The Sunday Times articles both this Sunday and a couple of Sundays ago. To note, we do not write the headlines. I think if you get past the headline a couple of weeks ago, as you look at the bulk of all of what was in the article two weeks ago and last week, we have had some extremely positive feedback from frankly, all stakeholders. I think everybody who has looked at this has said a number of things. It is interesting, I will come into this a minute, why does not the government sort this out?

Speaker #1: What is really interesting, and you've seen some of the Sunday Times articles both this Sunday and a couple of Sundays ago, to note we don't like the headlines.

Speaker #1: I think if you get past the headline a couple of weeks ago, actually look at the bulk of the all of what was in the article two weeks ago and last week, we've had some extremely positive feedback from, frankly, all stakeholders.

Speaker #1: And I think everybody who's looked at this has said a number of things. And it's interesting. I'll come into this a bit. Why doesn't the government sort this out?

Speaker #1: But also strong support that we are actually making this an issue that people need to be aware of and need to look at. Now, I said government like this, because actually when you look within it, we are speaking to a significant number of stakeholders within the wider organization that this government.

Jonathan Marren: Also strong support that we are actually making this an issue that people need to be aware of and need to look at. I said government like this because actually when you look within it, we are speaking to a significant number of stakeholders within the wider organization that is government. What you realize within that is that it is just not one body. It is many different bodies trying to work together. I think what we have seen is an incredible amount of support for our case that Invinity technology and more broadly, UK technology should have had a better run at that program. That is one of the reasons why I think The Sunday Times journalist picked it up. She is running with this because she thinks it is a really interesting story.

Speaker #1: And what you realize within that is that it's just not one body. It's many different bodies trying to work together. And I think what we have seen is an incredible amount of support for our case that Invinity Technology and more broadly UK technology should have had a better run at that program.

Speaker #1: And that's one of the reasons why I think the Sunday Times journalists picked that up. She is running with this because she thinks it's a really interesting story.

Speaker #1: We can create a significant number of jobs. And we can create a significant amount of investment. But simply when you come here and when you look across what the US does, the US offers a 30% refund on capex expenditure and a refund to the US manufacturers for putting manufacturing there.

Jonathan Marren: We can create a significant number of jobs, and we can create a significant amount of investment that simply won't come here. When you look across what the US does, the US offers a 30% refund on CapEx expenditure and a refund to the US manufacturers for putting manufacturing there. That is why they are moving there. The EU is looking to do something similar in the next couple of years. Japan does the same thing. The UK is unique in almost not doing that. There was a 5% benefit for UK content when actually they have had up to 20% in other cases. So we are asking the question, why was that done in this scenario?

Speaker #1: That's why we're moving there. The EU is looking to do something similar in the next couple of years. Japan does the same thing. And the UK is unique in almost not doing that.

Speaker #1: There was a 5% benefit for UK content when actually they've had up to 20% in other cases. So we're asking the question, why was that done in this scenario?

Speaker #1: And then when you look across the projects that work incentives, if you look at the pumped hydro projects, very specifically, one of the developers there has announced that they have some significant challenges in relation to costs and that project will only go ahead if it beats IRR thresholds.

Jonathan Marren: When you look across the projects that were consented, if you look at the pumped hydro projects and very specifically one of the developers there has announced that they have some significant challenges in relation to costs and that project will only go ahead if it beats IRR thresholds. So certainly a warning that won't happen. Some of the other developers have got some rather unique lithium projects which again have never been done before. There is a strong argument that a broad breadth of technologies across just those two narrow verticals would make sense for all the other reasons we can talk about. My view is I would prefer. Our share price was doing very well up until that announcement, and it is highly disappointing, and we were very disappointed with the result.

Speaker #1: So certainly a warning that won't happen. And then some of the other developers have got some rather unique lithium projects, which again have never been done before.

Speaker #1: And there is a strong argument that they broad breadth of technologies across just those two narrow verticals. Would make sense for all the other reasons we can talk about.

Speaker #1: And so my view is I would prefer this has our share price was doing very well up until that announcement. And it is highly disappointing and we were very disappointed with the result.

Speaker #1: And I think it's only right that we push that scenario through. Should we do that in private? Yes, we are significantly. I think us highlighting to others to gather support has been really well received.

Jonathan Marren: I think it is only right that we push that scenario through. Should we do that in private? Yes, we are significantly. I think us highlighting to others to gather support has been really well-received.

Speaker #1: And we are hearing some very positive vibes that come back. Will that ultimately result in a change? I do not know and I can't forecast that.

Jonathan Marren: We are hearing some very positive vibes that come back. Will that ultimately result in a change? I do not know, and I cannot forecast that. I tell you what, I would far prefer to fly the flag of Invinity and do our best to get some changes, than hide away and not do that and just say, "Oh, wouldn't it be nice if it had changed?" I think we have done everything we can do, and we are definitely being listened to at very, very high levels. Will the machines of the wider government enable them to change at this stage? As I say, I do not know. What is really interesting is if you look at what this means for our technology versus others, typically, our technology scored at the same price points, same financials as other technologies.

Speaker #1: But I tell you what, I would far prefer to fly the flag in Invinity and do our best to get some changes and hide away and not do that and just say, oh, it would be nice.

Speaker #1: Would it be nice if it had changed? I think we have done everything we can do. And we are definitely being listened to at very, very high levels.

Speaker #1: Will the machines of the wider government enable something to change at this stage? As I say, I don't know. What's really interesting is if you look at what this means for our technology versus others, typically our technology is scored at the same price point, same financials as other technologies.

Speaker #1: So this wasn't anything to do with quality of either quality of technology or quality of price. I think our projects were marked quite harshly.

Jonathan Marren: This wasn't anything to do with quality of technology or quality of price. I think our projects were marked quite harshly. They were inundated with the number of projects that went into cap and floor, and I think they took some pretty generic assumptions and again, looked at reports on other technologies, which were a couple of years old and drew some very unfair, unhelpful, shall we say, comparisons on those. That is why our customers have gone back and said, "Look, that is not right. You are using incorrect data." I think there are a whole bunch of reasons as to why what came out wasn't fair.

Speaker #1: There was a they were inundated with a number of projects that went into cap and floor. And I think they took some pretty generic assumptions.

Speaker #1: And again, looked at reports on other technologies which were a couple of years old and drew some very unfair sort of unhelpful, shall we say, comparisons on those.

Speaker #1: So that's why our customers have gone back and said, look, that's not right. You've used incorrect data. So I think there were a whole bunch of reasons as to why what came out wasn't fair.

Speaker #1: And also a lot of the projects have said, look, the scoring system wasn't made clear. That it was only really announced and even then quite opaque at the end of it.

Jonathan Marren: Also a lot of the projects have said, "Look, the scoring system wasn't made clear, and it was only really announced, and even then it was quite opaque at the end of it." A lot is being done in this process that not just us, but others think should and could have been done better. Therefore, it is only right that we push this. There is talk of there being another round shortly to follow. For us, we are very much concentrated on this round. This is an issue that needs to be dealt with sooner rather than later. I want to create those 1,000 jobs up in Scotland. I want to bring investment here. As I think the article says, "Proud, British, I want it to work here." There is no reason why it cannot with a little bit of movement and sense from the Government.

Speaker #1: So a lot has been done in this process that not just us, but others think should and could have been done better. And therefore, it's only right that we push this.

Speaker #1: There is talk of there being another round shortly to follow. For us, we are very much concentrating on this round. This is an issue that needs to be dealt with sooner rather than later.

Speaker #1: I want to create those 1,000 jobs up in Scotland. I want to bring investment here. As I think the article said, proud British, I want it to work here.

Speaker #1: And there's no reason why it can't with a little bit of movement and so it comes with it.

Speaker #2: Okay. Thanks. I think this follows naturally on. There's a question here around UK manufacturing. Do we have the scale to deliver projects like Flexbase, but also other large-scale projects presumably to refer to?

[Company Representative] (Invinity): Okay, thanks. I think this follows naturally on. There is a question here around UK manufacturing, and do we have the scale to deliver projects like FlexBase, but also other large-scale projects presumably refer to

[Company Representative] (Invinity Energy Systems): Okay, thanks. I think this follows naturally on. There is a question here around UK manufacturing, and do we have the scale to deliver projects like FlexBase, but also other large-scale projects presumably refer to.

Speaker #1: So it takes about six months lead time for us to scale. And that's typically the lead time on these manufacturing. And so we've got that stat well in order for the US.

Jonathan Marren: It takes about a six-month lead time for us to scale, and that is typically the lead time on the stack manufacturing. We have got that stack line in order for the US that will be delivered shortly and will be capable of being commissioned and brought up to speed quite quickly. We do not at the moment, but that is the whole point. If we did at the moment, we would be putting a lot more unabsorbed overheads through the P&L, which would be impacting profitability. These can scale quickly. We are able to bring in and repurpose people from the oil and gas industry, people who are midway through their careers, but also graduates and apprenticeships. We really can tap into the labor market that is available now. These are not highly skilled people. These are people with training who can be retrained in other areas.

Speaker #1: That will be delivered shortly and will be capable of being so commissioned and brought up to speed quite quickly. So we don't at the moment, but that's the whole point.

Speaker #1: If we did at the moment, we would be putting a lot more unabsorbed overheads through the P&L, which would be impacting profitability. But we can scale quickly.

Speaker #1: We are able to bring in and repurpose people from the oil and gas industry. People who are midway through their careers, but also graduates and apprenticeships.

Speaker #1: We really can tap into the labor market that is available now. These are not highly, highly skilled people. These are people with training who can be retrained in other areas.

Speaker #1: And so that's the lead time that we can move to. Otherwise, whenever we bring people up to mother or bathgate, those have been up before on any of the open days.

Jonathan Marren: That is the lead time that we can move to. Otherwise, whenever we bring people up to Motherwell, Bathgate, those who have been up before on any of the open days will see that what we really need is a dry, enclosed area. It is useful to have a crane that can carry 30 tons, but actually we can do that with a forklift. Ultimately, we need a stable floor. It does not need to be temperature-controlled. It is in Scotland. It does need a little bit of heat, of course. Ultimately, we can find space pretty quickly, and with some Cap and Floor orders, we can quite quickly move to bring that investment in and get them up and running.

Speaker #1: We'll see that what we really need is a dry and closed area. Yes, it's useful to have a frame that can carry 30 tons, but actually we can do that with a forklift.

Speaker #1: Ultimately, we need a stable floor and it doesn't need to be temperature controlled. It is in Scotland. It doesn't need a little bit of heat, of course.

Speaker #1: But ultimately, we can find space pretty quickly. And with substantial cap and floor orders, we can quite quickly sort of move to bring that investment in and get those up and running.

Speaker #2: Okay. And speaking of, there's questions around US manufacturing. John would probably still be going to talk about. And with Julie being asked a couple of questions around it, in terms of when are we going to hear more?

[Company Representative] (Invinity): Okay. Speaking of, there are questions around US manufacturing. Jonathan promised we were going to talk about, and we have duly been asked a couple of questions around it in terms of when are we going to hear more? What are the plans?

[Company Representative] (Invinity Energy Systems): Okay. Speaking of, there are questions around US manufacturing. Jonathan promised we were going to talk about, and we have duly been asked a couple of questions around it in terms of when are we going to hear more? What are the plans?

Speaker #2: What's the plans?

Speaker #3: Yeah. Look, I mean, as John has touched on, there are tremendous advantages to manufacturing in the US with the US market. Both in terms of tax credits and on the production side and tax refunds on the customer side.

Matt Harper: Yeah, look, as Jonathan Marron touched on, there are tremendous advantages to manufacturing in the US for the US market, both in terms of tax credits and on the production side and tax refunds on the customer side. We are, I would say, most of the way through selecting, as I say, we are in negotiation on contracts for leasing the space that we are going to build this facility out in. We have validated that we have got an initial team that is going to be able to go and help us get that set up. So we are not starting fresh with new personnel. We have got a team ready to step in. I think we will be announcing that final location once those contractual details are locked in.

Speaker #3: We are I would say most of the way through selecting a site we're in negotiation on contracts for leasing the space that we're going to build this facility out in.

Speaker #3: We've validated that we've got an initial team that's going to be able to go and help us get that set up. So we're not starting fresh with new personnel.

Speaker #3: We've got a team ready to step in. And I think we'll be announcing that final location once those contractual details are logged in.

Speaker #2: Brilliant. Okay. And with briefing about the numbers, there's a question here asking around sort of the uplift in admin overheads. And I don't know if you could just cover that up and give it more colour.

[Company Representative] (Invinity): Brilliant. Okay. Briefly go back to the numbers. There is a question here, asking around the uplift in admin overheads. Adam Howard, perhaps you could just cover that off just to give a bit more color.

[Company Representative] (Invinity Energy Systems): Brilliant. Okay. Briefly go back to the numbers. There is a question here, asking around the uplift in admin overheads. Adam Howard, perhaps you could just cover that off just to give a bit more color.

Speaker #4: good question. So the one and a half million movement in the bottom line there is what explained in note four of the accounts. Essentially, there are two factors driving that.

Adam Howard: Yeah, so good question. The 1.5 million movement in the bottom line there is well explained in note 4 of the accounts. Essentially, there are two factors driving that. Half of it is a comparator effect, now that we have completed ENDURIUM and the joint development agreement, those recoveries are no longer there from Siemens Gamesa, given the joint project is pushed out to market. Then the other half of it is an increase in staff costs. Now, the increase in staff costs is the investment we are making to deliver that 60% cost reduction. I think it is really important we make that investment. It is also what you are seeing driving the improvement in gross margins and growth profit line. So the improvement in component costs, the improvement in component performance is what is driving those improved gross margins.

Speaker #4: Half of it is a comparative effect. Now that we've completed Endurium and the joint development agreement, those recoveries are no longer there from Gamesa, given that joint budget has pushed out to market.

Speaker #4: And the other half of it is an increase in staff costs. Now, the increase in staff costs is the investment we're making to deliver that 60% cost reduction.

Speaker #4: I think it's really important we make that investment. It's also what you're seeing driving the improvement in gross margins and gross profit line. So the improvement in component costs, the improvement in component performance is what's driving those improved gross margins.

Speaker #4: So it is investment we're making now to deliver on the numbers we have. And the outlook we have out there. So acknowledge the point.

Jonathan Marren: It is investment we are making now to deliver on the numbers we have and the outlook we have out there. So acknowledge the point. We are managing our admin budget judiciously.

Adam Howard: It is investment we are making now to deliver on the numbers we have and the outlook we have out there. So acknowledge the point. We are managing our admin budget judiciously. In order to manage against that, the investment you are seeing in those R&D staff costs is reflecting that as well.

Speaker #4: We're managing our admin budget judiciously in order to manage against that. And the investment you're seeing in those R&D staff costs is reflecting that as well.

Jonathan Marren: In order to manage against that, the investment you are seeing in those R&D staff costs is reflecting that as well.

Speaker #2: Thanks. And I'll stick with you, Adam. There's a sort of slight technical question asking around sort of how it works in terms of the sales and the cash coming through.

[Company Representative] (Invinity): Thanks. I will stick with you, Adam. There is a slight technical question asking around how it works in terms of the sales and the cash coming through. Is selling a battery a one-off or on a maintenance contract? How does that flow through the projects?

[Company Representative] (Invinity Energy Systems): Thanks. I will stick with you, Adam. There is a slight technical question asking around how it works in terms of the sales and the cash coming through. Is selling a battery a one-off or on a maintenance contract? How does that flow through the projects?

Speaker #2: Is selling a battery a one-off or are there maintenance contracts? How does that flow through as we deliver projects?

Speaker #4: Yeah. So the bulk of the revenue recognition, so 95% plus is on delivery of the battery at the moment. There is an ongoing piece there in terms of the long-term service agreement that we recognise and reoccurring revenues over time.

Adam Howard: Yes, the bulk of the revenue recognition, so 95% plus, is on delivery of the battery. At the moment, there is an ongoing piece there in terms of the long-term service agreement that we recognize and recurring revenues over time. For our bigger projects, so the likes of FlexGen, what would make more sense for those sort of projects is a percentage completion basis. That is what the industry tends to use. But certainly for our main deliveries, the bulk is upon delivery of the ENDURIUM product.

Speaker #4: For our bigger projects, so like Flexbase, what would make more sense for those sort of projects is a percentage completion basis. That's what the industry tends to use.

Speaker #4: But certainly for our main deliveries, the bulk is upon delivery of the Endurium product.

Speaker #2: Okay. Thank you. And there's a question that always comes up. It's because it's something that I think I'll chill. There's always keeping on. Competition, where are we seeing the main competition and how and in what format and what markets?

[Company Representative] (Invinity): Thank you. There is a question that always comes up. It is because it is something that I think our shareholders are always keeping an eye on. Competition, where are we seeing the main competition and how and in what markets? Do you want to take that?

[Company Representative] (Invinity Energy Systems): Thank you. There is a question that always comes up. It is because it is something that I think our shareholders are always keeping an eye on. Competition, where are we seeing the main competition and how and in what markets? Do you want to take that?

Speaker #1: And Julie?

Speaker #3: Sure. Yeah. Look, the number one commercial competition that we usually see is always like this. It's 98% of the world's market. That's from a competitive perspective.

Matt Harper: Sure. Look, the number one commercial competition that we usually see is always lithium. It is 98% of the world's market. That is from a competitive perspective, the thing that is most challenging for us. I think the question, though, is what other flow battery companies are out there. We certainly do come up against some of them. The FlexBase project, for example, they have invited multiple bids. They got everyone of interest in the industry globally bidding into it. What I would say is that competition out of some of the lower cost regions, China and India, for example, was present in those bids, but was deemed to not have the kind of track record that we were able to bring to the table. Yes, there are other players out there. No one has been able to incredibly burst market more than we have this year.

Speaker #3: The thing that's most challenging for us. We do see, I think the question though is what other flow battery companies are out there. We certainly do come up against some of them.

Speaker #3: The Flexbase project, for example, they had invited multiple bids. They got sort of everyone interested of interest in the industry globally bidding into it.

Speaker #3: What I would say is that competition out of some of the lower cost regions in China and India, for example, was present in those bids, but was deemed to not have the kind of track record that we were able to bring to the table.

Speaker #3: So yes, there are other players out there. No one has been able to incredibly approach the market in the way that we have at least yet.

Speaker #2: Okay. And moving on to a different area and sort of more corporate, there's three different questions asking the same thing here about have we got is the idea of moving to the US or a US listing sort of something that's on the cards given the sort of focus on the commercial side of John.

[Company Representative] (Invinity): Okay. Moving on to a different area, more corporate. There are three different questions asking the same thing here about, is the idea of moving to the US or a US listing something that is on the cards, given the clear focus on the commercial side of the-

[Company Representative] (Invinity Energy Systems): Okay. Moving on to a different area, more corporate. There are three different questions asking the same thing here about, is the idea of moving to the US or a US listing something that is on the cards, given the clear focus on the commercial side of the-

Speaker #1: Okay. I mean, we could maybe phrase the question, rephrase the question. There's moved to the US or look to include the US capital markets in our thinking.

Jonathan Marren: Okay. We can maybe rephrase the question. There is move to the US or look to include the US capital markets in our thinking. I think the second part of that is absolutely true at the right point in time. I was at a conference in the US with one of our brokers a few months ago and spoke to quite a number of potential shareholders there. In fact, quite a few of them following those discussions bought shares. They fully understand that market in the US. When you look at where the bulk of our projects are and the bulk of our pipeline is, it would make absolute sense to try and tap in a liquid investor base there that really understands what we are doing and why we are doing it. However, again, we are still committed to the UK.

Speaker #1: And I think the second part of that is absolutely true. At the right point in time, I was at a conference in the US with one of our brokers a few months ago and spoke to quite a number of shareholders, potential shareholders there, in fact, quite a few of them following those discussions bought shares.

Speaker #1: They fully understand that market in the US. And when you look at where the bulk of our projects are and the bulk of our pipeline is, it would make absolute sense to try and tap in a liquid investor base there that really understands what we are doing and why we are doing it.

Speaker #1: However, again, we are still committed to the UK. We have the National Wealth Fund as a major shareholder of ours. And maintaining liquidity and listing in London will absolutely be at the forefront of our attention.

Adam Howard: We have the National Wealth Fund as a major shareholder of ours, and maintaining liquidity and a listing in London will absolutely be at the forefront of our attention. So move to US, no. At the right point in time, when we are the right size to be able to potentially tap that liquidity, yes, that is a possibility. Are we about to announce that in the near future? I would say no.

Jonathan Marren: We have the National Wealth Fund as a major shareholder of ours, and maintaining liquidity and a listing in London will absolutely be at the forefront of our attention. So move to US, no. At the right point in time, when we are the right size to be able to potentially tap that liquidity, yes, that is a possibility. Are we about to announce that in the near future? I would say no.

Speaker #1: So move to US, no. At the right point in time when we have the right size to be able to potentially attack that liquidity, yes, that is a possibility.

Speaker #1: Are we about to announce that in the near future? I would say no.

Speaker #2: Okay. Question about cost down map. I'll probably come to you. Is obviously good progress on the cost down. Is are you worried about customers delaying until products become cheaper?

[Company Representative] (Invinity): Question about cost down. Matt, I will probably come to you. Obviously, good progress on the cost down. Are you worried about customers delaying until products become cheaper? The idea that someone might just hang on for 6 months and just order it later. Is that something that we are seeing or something to worry about?

[Company Representative] (Invinity Energy Systems): Question about cost down. Matt, I will probably come to you. Obviously, good progress on the cost down. Are you worried about customers delaying until products become cheaper? The idea that someone might just hang on for 6 months and just order it later. Is that something that we are seeing or something to worry about?

Speaker #2: So the idea that someone might just hang on for six months and just order it later. Is that something that we're seeing or something we're worried about?

Speaker #3: Look, it's always it is something to be concerned about. We have not seen that actually happen within our pipeline. Usually by the time our customers approach us, especially to that segmentation we went through earlier, most of them are either a commercial and industrial customers who are looking to save money on their electricity bills starting tomorrow or AI data centers where they absolutely are not able to connect to the grid and install that data center until they've got a power solution in place.

Matt Harper: Look, it is something to be concerned about. We have not seen that actually happen within our pipeline. Usually, by the time our customers approach us, especially to that segmentation we went through earlier, most of them are either C&I customers who are looking to save money on their electricity bill starting tomorrow, or AI data centers where they absolutely are not able to connect the grid and install that data center until they have got our solution in place. Both those things mean it has to be installed as soon as humanly possible, and therefore waiting is not an option.

Speaker #3: Both those things mean that it has to be installed as soon as humanly possible and therefore waiting is not an option.

Speaker #2: Okay. Fair enough. Let's go I can see a question here just asking around bankability and clearly it's something that we've been focusing on track record, 11 gigawatt hours, which part of that.

[Company Representative] (Invinity): Fair enough. Let us go, I can see a question here just asking around bankability. Clearly, it is something that we have been focusing on, track record, 11 MWh, which will be part of that. It is a reference to the previous one of these, I think we already talked about we were having some positive conversations with banks and others around project financing. Are those discussions still ongoing, Adam?

[Company Representative] (Invinity Energy Systems): Fair enough. Let us go, I can see a question here just asking around bankability. Clearly, it is something that we have been focusing on, track record, 11 MWh, which will be part of that. It is a reference to the previous one of these, I think we already talked about we were having some positive conversations with banks and others around project financing. Are those discussions still ongoing, Adam?

Speaker #2: It's a reference to the previous one of these. I think we talked about we were having some positive conversation with banks and others around project financing.

Speaker #2: Are those discussions still ongoing? Adam?

Speaker #4: Yeah. So really important point as we step up from delivering smaller scale units to large commercial units backed by project finance debt. And you're starting to see that now in the first few projects we're doing at commercial scale typically beyond 2030, megawatt hours.

Adam Howard: Yeah. The really important point as we step up from delivering smaller scale units to large commercial units backed by project finance debt. We are starting to see that now in the first few projects we are doing at commercial scale, typically beyond 20, 30 MWh. We have had a number of discussions around that. One of the key parts of that is them being able to put insurance wrap around the product in order to get the project finance lenders comfortable there in terms of risk return. We have progressed those discussions materially and looking to close that out, as we said, over the next few months. In order to get to a place where, for cap and floor, as they are engaging with their project finance lenders, they can put non-recourse debt behind the product. Really important work stream. Also, the benefit of Copwood is really important here.

Speaker #4: And we've had a number of discussions around that. One of the key parts of that is them being able to put insurance wrap around the product in order to get the project finance lenders comfortable there in terms of risk return.

Speaker #4: We have progressed those discussions materially. And looking to close that out, as we said, over the next few months. In order to get to a place where for cap and floor, so engaging with their project finance lenders they can put non-recourse debt behind the product.

Speaker #4: And so really important workstream. Also the benefit of corporate is really important here. So being able to take both the insurance providers we're working with, two in particular, and also the lenders where we're working mainly with two including our house bank, being able to take those entities out to a project site in the UK to see an operating project of that scale on the grid is really important in terms of driving those discussions.

Adam Howard: So being able to take both the insurance providers, we are working with two in particular, and also the lenders, where we are working mainly with two, including our house bank. Being able to take those entities out to a project site in the UK to see an operating project of that scale on the grid is really important in terms of driving those discussions. Seeing positive momentum on that this year.

Speaker #4: So yeah, seemed positive momentums on that this year.

Speaker #2: Perfect. And you mentioned corporate there's a couple of questions here asking what is going on with when are we going to see that going live.

[Company Representative] (Invinity): Perfect. You mentioned Copwood. There are a couple of questions here asking, what is going on with Copwood? When are we going to see that going live? I know we have briefly talked about it, but can you give a little bit more about what is between us and that project being switched on and making revenue?

[Company Representative] (Invinity Energy Systems): Perfect. You mentioned Copwood. There are a couple of questions here asking, what is going on with Copwood? When are we going to see that going live? I know we have briefly talked about it, but can you give a little bit more about what is between us and that project being switched on and making revenue?

Speaker #2: I know we've sort of briefly talked about it, us and that project being switched on and making revenue?

Speaker #1: I mean, look, we had a conversation with the journalist earlier. You asked us the same question with the response was messy with a sort of a shrug and a nod.

Jonathan Marren: We had a conversation with a journalist earlier who asked us the same question, and the response was met with a shrug and a nod. We are in no different position than a lot of developers. In case you are wondering why projects slip, it is normally things outside of the developer or the technology provider's control, of which we are both on this front. We were hoping that this asset, and we certainly engaged with the DNOs to try and make sure that this asset would be connected in the H1 of this year. We certainly did all the work we could do our end and paid all the monies across. We had to actually advance to make sure equipment could be ordered. Notwithstanding that, the slow progress has been seen by us as others. I think they have done all the work in the road.

Speaker #1: We are no different position than a lot of developers in case you're wondering why projects slip. It's normally things outside of the developer or the technology providers control of which we are both on this front.

Speaker #1: We were hoping that this asset and we certainly engaged with the DNO to try and make sure that this asset would be connected in the first half of this year.

Speaker #1: We certainly did all the work we could do our end and paid all the monies across we had to actually in advance to make sure equipment could be ordered.

Speaker #1: And notwithstanding that, the slow progress has been seen by us as others. So I think they've done all the work in the road. They've done the connections.

Jonathan Marren: They have done the connections up. We now site it all in September. They are just doing the final work. Adam Howard, what are we saying when we are anticipating switch on?

Speaker #1: We now set it towards the end of September. They're just doing the final work. And Adam, what are we saying when we're anticipating switch on?

Speaker #2: Yeah. So kind of the project fully delivered. So waiting on the substation so by the end of the year, we'll have that project fully commissioned.

Adam Howard: Yeah, so in terms of the project fully delivered, so as you are waiting on the substation, by the end of the year, we will have that project fully commissioned. We are expecting to get the first commissioning test by the end of November, and then we will complete that process.

Speaker #2: We're expecting to get going for those first commissioning tasks by the end of November. And then we'll complete that process. Yeah.

Speaker #1: Frustratingly slow entirely outside of our control despite our best efforts. But as I say, yeah, this is seen across the industry and one of the things the industry needs to work on to get these projects connected quicker.

Jonathan Marren: Yeah. Frustratingly slow, entirely outside of our control, despite our best efforts. But as I say, this is seen across the industry and one of the things the industry needs to work on to get these projects connected quicker.

Speaker #2: Okay. And obviously very much looking forward to inviting those on the call. When we do get connected.

[Company Representative] (Invinity): Obviously, very much looking forward to inviting those on the call.

[Company Representative] (Invinity Energy Systems): Obviously, very much looking forward to inviting those on the call. When we do get it next.

[Company Representative] (Invinity): When we do get it next.

Speaker #1: Absolutely.

Jonathan Marren: Absolutely.

Speaker #2: Moving on, there's a question here on vanadium around what our approach is to that and our view on sort of it as a future.

[Company Representative] (Invinity): Moving on, there is a question here on vanadium, around what are our approaches to that and our view on it as a future, maybe as part of the cost down, but also in terms of security of supply. Matt, do you want to speak a little bit about vanadium?

[Company Representative] (Invinity Energy Systems): Moving on, there is a question here on vanadium, around what are our approaches to that and our view on it as a future, maybe as part of the cost down, but also in terms of security of supply. Matt, do you want to speak a little bit about vanadium?

Speaker #2: Maybe as part of cost down, but also in terms of security of supply. Matt, do you want to speak a little bit about vanadium?

Speaker #3: Yeah, sure. Look, we continue to scour the world for the best, highest quality lowest cost sources of that material. I think what we've found over the last year is there are some emerging sources, particularly in the secondary product realm, which is very encouraging.

Matt Harper: Yeah, sure. Look, we continue to scour the world for the best, highest quality, lowest cost sources of that material. I think what we have found over the last year is there are some emerging sources, particularly, in the secondary product realm, which is very encouraging. Secondary product, meaning that we are not digging new holes in the ground. This material is coming out of either the petrochemical industry or the steel industry, as a waste stream. And what we are finding is more and more that there are new production capabilities coming online on the basis of some sort of advanced manufacturing and advanced purification processes. We have greatly enjoyed where the prices are in the current market. And what we see is the current market prices being reinforced more and more by new entrants.

Speaker #3: Secondary product meaning that we're not doing new holes in the ground. This material is coming out of either the petrochemical industry or the steel industry.

Speaker #3: As a waste stream. And what we're finding is more and more that there are new production capabilities coming online on the basis of some sort of advanced manufacturing and advanced purification processes.

Speaker #3: So we've greatly enjoyed where the prices are in the current market. And what we see is the current market prices being reinforced more and more by new entrants.

Speaker #3: So market prices are likely to stay closer to where they are now than where they've been over the last decade. And in the background, we're continuing to work very closely with some of those existing and emerging producers to make sure that we can get continued low-cost offtake of these asset products.

Matt Harper: Market prices are likely to stay closer to where they are now than where they have been over the last decade. In the background, we are continuing to work very closely with some of those existing and emerging producers to make sure that we can get continued low cost off-take of these assets positively.

Speaker #2: Brilliant. Okay. There's a number of people that have referenced the recent Icelandic someone's here referenced the monthly newsletter we put out with a picture of the Trade Commissioner for Europe, Flexbase.

[Company Representative] (Invinity): Brilliant. Okay. There is a number of people that have referenced the recent items. I think someone said referenced the monthly newsletter we put out, with a picture of the trade commissioner for Europe at FlexBase. How are we feeling the engagements going with the UK, Canadian, and governments in general? Are we getting those There seems to be a lot of meetings, but do we feel that those are actually bearing fruit and building relationships? Jonathan, do you want to-

[Company Representative] (Invinity Energy Systems): Brilliant. Okay. There is a number of people that have referenced the recent items. I think someone said referenced the monthly newsletter we put out, with a picture of the trade commissioner for Europe at FlexBase. How are we feeling the engagements going with the UK, Canadian, and governments in general? Are we getting those There seems to be a lot of meetings, but do we feel that those are actually bearing fruit and building relationships? Jonathan, do you want to-

Speaker #2: How are we feeling the engagements going with the UK, Canadian and governments in general? Are we getting those seems to be a lot of meetings, but do we feel that those are actually bearing fruit and building relationships with Jonathan?

Speaker #1: Yeah. Maybe a shout out first of all for our local MP in Bathgate, Kirsten Sullivan. She could not have been more helpful towards us or more supportive.

Jonathan Marren: Yeah. Maybe a shout-out first of all for our local MP in Barking, Kirsten Smallwood. She could not have been more helpful towards us or more supportive. But also, we have seen that across a number of other MPs and ministers in this space. They are very, very helpful and supportive and understanding, and want us to do well. The trick is enabling them to have the evidence to bring that forward to effect change. I think that is just in general the way government works. Not this government, but government in general works. That is one of the challenges I think we face in the UK, maybe more so than elsewhere. But, at a level where we are dealing with people, we get a very, very positive response. And I think we are making progress. Let us look, we have had a lot of funding from the UK governments.

Speaker #1: But also we've seen that across a number of other MPs and ministers in this space. They are very, very helpful and supportive and understanding and want us to do well.

Speaker #1: The trick is enabling them to have the evidence to bring that forward to effect change. I think that's just in general the way government works, not this government, but government in general works.

Speaker #1: That's one of the challenges I think we face in the UK, maybe more so than elsewhere. But at a level where we are dealing with people, we're getting very, very positive response.

Speaker #1: And I think we are making progress. And let's look, we've had a lot of funding from the UK governments. The disappointment is what happened with cap and floor.

Jonathan Marren: The disappointment is what happened with Cap and Floor, and I think that really was quite a unique government department going off on its own and doing one thing, and probably delivering an outcome that no one quite expected. That is separate from how our sort of level of engagement works elsewhere. Maybe from a Canadian perspective, Matt?

Speaker #1: And I think that really was quite a unique government department going off on its own and doing one thing. It probably delivering an outcome that no one quite expected.

Speaker #1: That is separate from how our sort of level of engagement works elsewhere. Maybe if a Canadian perspective, Matt?

Speaker #3: Yeah, look, I mean, I would say Canada, obviously very interested in infrastructure projects and national interest right now. One of the big conversations is around they call it pan-Canadian electrification.

Matt Harper: Yeah, look, I would say Canada, obviously very interested in infrastructure projects of national interest right now. One of the big conversations is around, they call it Pan-Canadian Electrification. So basically strengthening the electric grid, not only within individual provinces in the country, but looking at the interconnection of all those provinces together. That is an investment program expected to stretch into the tens of billions of dollars over the next 5 years. And storage is one of the items on the docket as being a critical part of that infrastructure. So, no deals to announce yet. But certainly individual portions of that strategy are likely to be storage and as one of the preeminent Canadian storage suppliers, so we think we are likely to be able to contribute to that.

Speaker #3: So basically strengthening the electric grid, not only within individual provinces within the country, but looking at the interconnection of all of those provinces together.

Speaker #3: That is an investment program expected to stretch into the tens of billions of dollars over the next five years. And storage is one of the items on the docket as being a critical part of that infrastructure.

Speaker #3: So no deal's to announce yet. But certainly individual portions of that strategy are likely to be storage and as one of the preeminent Canadian storage suppliers, we think we're likely to take be able to take a good use of that.

Speaker #2: Lovely. I think we've managed to get through most of the Q&A there. So I'll pass back to Lily.

[Company Representative] (Invinity): Lovely. I think we have managed to get through most of the Q&A there, so I will pass back to Lily.

[Company Representative] (Invinity Energy Systems): Lovely. I think we have managed to get through most of the Q&A there, so I will pass back to Lily.

Speaker #4: That's great. Thank you for answering those questions you can from investors and of course the company can review all questions submitted today and will publish those responses on the investor meet company platform.

Operator: That's great. Thank you for answering those questions you have from investors. Of course, the company can review all questions submitted today, and we'll publish those responses on the InvestorMeetCompany platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Jonathan, could I please just ask you for a few closing comments?

Speaker #4: Just before redirecting investors to provide you with their feedback, which I know is particularly important for the company, Jonathan, could I please just ask you for a few closing comments?

Speaker #2: Yeah, of course. Lily, thank you. Just finishing on from what Matt was saying there, when I look at the business, that government engagement also crosses the US as well.

Jonathan Marren: Yeah, of course, Lily. Thank you. Just finishing on from what Matt was saying there. When I look at the business, that government engagement also crosses the US as well. We have the California Energy Commission. California is the fourth largest economy in the world. We have the government organization there, that's the Energy Commission, hugely supportive of us in pushing projects our way. When I look across Europe, we are building or designing with a very clear route to building, effectively, a system that will deliver more power than the two nuclear power stations next door to it. We've got a technology that's robust with data and heading towards the right price point. We are in a good position as the market is also looking for our type of product. We've done a lot of the hard work here.

Speaker #2: We have the California Energy Commission, California is the fourth largest economy in the world. We have the government, the government organization there that's the energy commission, hugely supportive of us and pushing projects our way.

Speaker #2: When I looked across Europe, we are building or designing with a very clear route to building a effectively a system that will deliver more power than the two nuclear power stations next door to it.

Speaker #2: We've got a technology that's robust with data and heading towards the right price points. We are in a good position as the market is also looking for our type of product.

Speaker #2: So we've done a lot of the hard work here. There will be ups and downs along the way, but I'm confident the trajectory is in the right direction.

Jonathan Marren: There will be ups and downs along the way, but I'm confident the trajectory is in the right direction. I'm really excited to see what the future could bring. Thank you.

Speaker #2: I'm really excited to what the future can bring.

Speaker #4: That's great. Thank you for updating investors today. Could I please ask investors not to close this session as we're now being automatically redirected to provide your feedback in order that the management team can best understand your views and expectations.

Operator: Thanks. Thank you for updating investors today. Could I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management team can best understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good afternoon to you all.

Speaker #4: This will only take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

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Half Year 2026 Invinity Energy Systems Ltd Earnings Call

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