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.

We've got about an hour's session here. Aim is to go through the presentation in about half an hour, leave enough time for a Q&A.

We've already had some really interesting questions come through, 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.

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. 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.

The reason being is that we've thought long and carefully about how we tell people who we are and how we differentiate ourselves from the competition. That's not just to investors, but that's also to the commercial space.

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. The reason being is that what we offer is a flexible energy storage solution.

The reason flexibility is important is that markets are changing rapidly. By that, with electrification, the requirements from the grid are changing rapidly.

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. That obviously is 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 on to the grid chasing a particular revenue stream, and quite quickly, when that became saturated, they became stranded.

We have a flexible battery solution. It's flexible because there is 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. When we are offering a solution that really can change with the requirement from such an AI data center, that's 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 it on a localized basis.

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

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 cover that in more detail. If you look about our technology as well, we really are a proven mechanical technology.

Mechanical, I say that because if you look at the assets that have typically put onto the grid over the last 100, 150 years, they're all mechanical assets. There are gas asset, there are coal-fired power station, there are 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. 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 isn't working, it might be a pump or a pipe.

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.

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's used with gravity, pushed down hill through a turbine that generates the power. For us, we do that via a chemical reaction, but ultimately it's the same.

For a user looking at this, it's not a new technology at all. Then flow batteries were 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. 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.

Then 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 the containerized solution, Endurium, but also we're able to talk about the flex-space solution at the bottom. Now what you'll note is I haven't talked about LDES and I haven't talked about non-lithium.

That's 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're very good at doing that and we are competitive in that area.

That flex-space project is a 2.5-hour system. That's not long duration, but actually that's a use case that works very well for us.

Then in terms of non-lithium, I've never liked saying we're a non-lithium business. You don't try and sell someone an SUV by telling them you're not a performance sports car.

Tell them exactly what you are, and I think that's really important. That flexible energy storage really really resignates [resonates?]

. Then when I talk to customers, we move on and 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, something we are very proud of. You'll see in the interims yesterday, that's notched on to 11 already and growing rapidly.

That's important because all the projects we talk to now that they send in technical consultants to review where we are, they need the track record, they need the data. These assets are looking to go in 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 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.

The work we've been doing to bring costs down is really opening up that market. When finally we talk about where we are indicatively from a price point, we are having some really interesting and accelerated conversations that we haven't had before.

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's component parts, but actually as you iterate those together, there is about 60 or 70 work streams that 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. 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. 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-space project.

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 a number of years ago is back on fire over the weekend.

These are really and can be really unstable assets. For us to be able to talk about the fact there's no thermal runaway risk makes a real difference from that planning perspective.

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. Domestic content is really important.

I think there's a question coming up on that as to whether we can take advantage of that, particularly in the US. I will not prejudge the answer to that, Matt, we can come on to that in a minute.

What is really, really important to me is how our customers think about us. The 11 gigawatt-hours is ultimately the result that you can't hide away from, and that will be a growing number.

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. Dr.

Greg Ryder 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, powering that casino. That asset has been 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 slide.

We have no stronger fan of the business than Indian Energy, and that's really, really positive. It's 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, and as you can see, the results of the track record on that battery have been really positive towards us.

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's interesting how this slide has developed over the last couple of years.

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. Now you can see we have a significant number of projects in the US, particularly on the West Coast.

Again, reference the California Energy Commission that 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.

That sits across both the East and West Coast in the US, but also across Europe as well. You'll see we have the flex-space project, which we'll talk about in a few moments' time, the Copwood energy system, which will be commissioned very soon.

Or at least the connection to the grid has just been finalized at the moment. We're ready to go, we're just waiting for others to do their work.

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 almost our longest and best-performing asset in some really harsh environments. 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 continue to support the UK through Bathgate and Motherwell.

Flex-space project will continue to support those two factories. We'll come onto Cap and Floor in a moment and how that potentially could change that or otherwise.

The US, as you see from where those projects are, do require US content, and that's one of the reasons why we will have a factory up and running by the end of this year, and that will be really important in servicing those markets. Spread across making sure that we use China from a low-cost perspective to deliver the heavy industry inputs, that's the steel container, that's the tanks, and then sort of elsewhere we can put the balance of system, we can put the electrolyte, and of course stacks manufactured locally.

Then finally, I briefly mentioned about 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, 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. There was a lot of the R&D work that was going towards Mistral, or now Endurium.

That came from development of supply chain and from scale that went through that. In a product which really was tough to iterate for cost because you did have that six batteries within a container and everything that went with that.

To be able to do that 60% with quite a hard product to try and take cost out of, and you can see Endurium, which is designed specifically to take cost out of, that we can go much further. 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'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.

The trajectory to get there opens up a very significant number of opportunities. 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 flex-space 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.

Their 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.

He meant the quality of the product, and also he 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 that significant cost out of.

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. Then also maybe six 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 market commentators will say the same thing.

They are not aware of where our price points are heading from the work that particularly Matt, you're 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 where we're heading into at the moment.

A really, really exciting place to be because of that work we're doing on cost and on performance. With that, I will hand over to Adam to talk through the numbers.

Good afternoon. 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 to just over 30 megawatt-hours. Really important in terms of scale and what you'll start to see flowing through some of the financials we go through later on.

Order book as it stands today looking forward is just under 80 megawatt-hours in size. Obviously, that's excluding the flex-space contract who're in the process of working through the final design and prototyping for 2028-2029 deliveries.

Gross loss down 60% year-on-year, and I'll go through in a bit of detail in a second as to what's driving that. We ended the first-half period with £10 million in cash plus £14 million inventory to deliver on those as-increased orders for the second half.

Profit and loss statement, a little bit more detail here. We increased our project and grant income to £1.7 million compared to £0.8 million in the first-half period last year.

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 the commissioning of four projects, export delivery and then the final completion of Copwood, our project in the UK, which would be the largest flow battery project in Europe.

What you're seeing is the last half a million recognized against that grant income there. In terms of the net loss, we are another £1.5 million reduction year-on-year to £12 million.

Really within that are two factors: it's the increased R&D headcount spend that we've announced there to drive our product cost down, and Jonathan run through where we are against plan on that and that starts to result of that investment. Then second, we've now completed the joint development agreement with Gamesa, there's less recoveries year-on-year netted 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. Sort of two concepts to explain here: first, that product costs refer to our direct costs, it's excluding overhead and warranty.

Second, this is trailing 12 months, looking over the last 12 months we've announced for each of those periods. What you're seeing there is a pick up in that gross margin over time and also delivering on increasing product margins.

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, so as a composition of our sale moves from VS3 into Endurium and we really delivered on our last VS3 sale now, we're seeing a pick up in those margins.

There's two key points. Then 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 lower provision there. The key drivers of what's happening on the gross margin line.

Next slide, please. Going into the balance sheet here, obviously two factors that impact cash: one, the cash reported on the balance sheet, and then second, the inventory, which is unwinding the delivery against those second-half orders.

As I say, finishing the year there with a cash position of inventory of £14 million, and then the cash addition to that of £10 million, and to give us in a solid cash position to support our going concern. Two other key points within here.

We talked about inventory, you're seeing there a capitalization of some of our product costs and with the completion of the joint development agreement with Gamesa, we're then capitalizing some of that work that's going into Mistral. You're seeing that there on the balance sheet.

Next point, please, Joe. Now I'll hand across to Matt on the core customer segments.

Great. Thanks so much, and great to be here with you this afternoon.

Look, now that we've got costs 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 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, looking to 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?

Where does Invinity's solutions solve those problems better than anything else that's available in the market? The clear answer comes back that there are three segments where we dramatically outperform other solutions: standalone and co-located LDES projects; commercial and industrial sites, especially where there's already co-generation involved; and in more emerging markets, the need for buffering and bolstering AI infrastructure.

We'll go to the next slide. The AI one is particularly exciting to us.

The in-front-of-meter LDES case and the C&I case, we've 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.

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 on to facilities. 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, 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, 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. The graph you see on the slide is showing 15 minutes' worth of electricity flow on to one of those sites, and you see those electric loads fluctuating from near-zero to near-100% over and over and over.

That's a load profile that is extremely difficult to integrate onto the electric grid, and something that utilities around the world are struggling with to integrate effectively onto their existing systems. In both cases, going back to Jonathan'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.

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. 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'd see through lithium-ion means that we have some significant advantages.

What do those advantages mean in terms of the numbers? Look, this is a massive opportunity: £45 billion around the world.

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. In both cases, clear evidence where we are materially better than the incumbents in a market segment that is experiencing massive and sustained growth.

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 us talk extensively over the last few months about our project with Flexspace.

It's really hard to underscore the scale of this project. 1.5 gigawatt-hours is a big number, but when you get on site and you see the magnitude of this facility that's 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.

This is 1.5 times that load. This is a massive piece of infrastructure that will be a critical asset on the Swiss grid, and 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 being proven to be that buffer between the data center's needs and what the grid can provide over the course of many decades.

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, 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 commercial pipeline.

Here's a bit more detail here on the pipeline and to inform the numbers. We've split the pipeline into three sections: first being our order book, those are signed unconditional orders; second being framework, essentially this is master service agreements or MOUs signed with customers that are going through final financing and contracting milestones; and then the development pipeline, these are really projects that have bid into a scheme with Invinity's technology or submitted for a license with Invinity's technology.

Just to give a sense of that essential unrisked basis, that's just under 13 gigawatt-hours across our pipeline at the moment. We're not including there the qualified pipeline that hasn't gone through some of those milestones.

How does that sit in terms of an outlook basis? Over the next three years of 2026 to 2028, you can see the bulk of that is sitting across North America.

That's really driven by incentives in that market at the moment, the 30% investment tax credit, the 10% production tax credit, the $45 per kilowatt-hour, a lot of incentives that boil up to about a 50% tax incentive for local manufacturing in that market, and you've 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's really split across two main areas of focus: one being renewable developers and utilities, predominantly there's larger schemes like the Cap and Floor that are being pushed out in North America at the moment; and then data center space, and we've talked a little bit early on to the use case there.

What does that translate to in terms of numbers? We've given a bit more color there.

This is now on a risked basis for sales. Essentially we are risking our order book there at 90%, 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 broken 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 there, who are the industry-leading forecaster in this market. Giving 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.

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

Essentially P50, 50% risk-weighting; P10, a 10% risk-weighting. Within the order book there, there's some slippage there given timing of revenue recognition.

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

It gives a little bit more visibility there in terms of how we put together the pipeline.

Thank you. Last slide, then we'll jump into Q&A.

We can justifiably say that we are a leader on that as a technology business in this space from the track record we've got and the commercial validation. What is important is that we scale this, we scale it rapidly to become commercially very successful.

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's where we're all driving to, but with extremely strong foundations of good technology with a product at the right cost.

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-space project, almost all of the projects within our pipeline are at bigger scales than you see across that entire map.

That's just evidence of the ability for us to move into those bigger projects. It comes from the work we've done on cost and will continue to do on cost and 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. 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 recognized 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. That commercial momentum we're 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're beginning to see now with a significant amount of that future revenue already backed into commercial orders.

Brilliant. Thanks, Ellie.

Delighted to see a lot of questions coming through. There's a few here I think relating to the financials, which, Adam, I'll probably start with you on.

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?

Yeah. As we mentioned earlier on, when you're looking at cash runway, it's a function of both cash on the balance sheet, and then the inventory, which is work we completed in the first half for delivery against our order book.

About half of that unwinding in the second half for our deliveries there, and then the remainder in early next year for our deliveries into 2027. 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.

Thanks. There's a couple of questions here on pipeline that I'm just seeing there.

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 we were talking about earlier

on? We're

Within within our 11 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? What what are those frameworks that people have signed?

Look, we've still got a healthy part of the business that's related to the front-meter 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 Flexspace 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've now got a lot of inbound interest in what we can do for those data center operators, builders, constructors. There are a large and growing number of other data center opportunities that are also part of that 12 gig or 11 gigs.

Great. That's actually another question here asking about Flexspace: do we see it as a one-off?

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 as we enter this new market, that we're 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'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.

I think just to follow on from that, the number one focus is that project in itself is extremely valuable to us, and the focus is entirely on getting that delivered. That is a delivery cycle to 2029-2030, 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, but for the moment, we are absolutely focusing on that because 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 sort of the parts of the pipeline that don't necessarily percolate up.

I was really, really reassured by just the number, breadth of deals that sits across that AI data center space. It's enormous, particularly the US front.

It's quite staggering to see what comes through.

We've actually got basically the same question asked twice in the same way from two people within a minute of each other. 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 China?

Is it India? Where is that?

Look, this is a global marketplace, and, whilst 180 may seem like a lot, when you strip out those working on product development as well, 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. 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. 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 Flexspace and other anecdotal evidence that we think our batteries perform better than a lot of the Chinese technologies, if not all of it. There is 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, very, very cost-conscious, and rightly so, we are pushed on margins. This is a business where we have to make returns for our shareholders, 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.

That is not a business model that we have really ever adopted or intend to adopt and don't need to adopt. Within India, we will look to cherry-pick opportunities where we don't have to do that, and I'm sure shareholders will support us in that.

There are European projects which sit alongside the Flexspace one in terms of sort of scale and breadth of opportunities. There's a lot of opportunities there that we are only scratching the surface on as well.

At some point in time, we will look a little bit broader towards Africa and elsewhere, but I think for the moment, we're concentrating on those core markets.

Okay. There's a few questions on Flexspace.

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 signed order?

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 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 components that are going to be installed into the basement of this data center. 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 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 that we need and our customer needs to make sure that we're doing properly.

Thank you. 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.

There's a number of questions here saying that they've seen articles in the press and the Sunday Times essentially saying that the market had some high expectations of a number of awards and really asking, what's our view on what happened and our view on the chance of anything changing or not?

Thank you, Joe. I was hoping to come onto this soon.

There's an awful lot we can talk about here, and, yeah, there are differing views I've 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.

Clearly we don't write the headlines. I think if you get past the headline a couple of weeks ago and actually look at the bulk of all of what was in the article two weeks ago and last week, we've had some extremely positive feedback from frankly all stakeholders.

I think everybody who's looked at this has said a number of things. It's interesting, I'll comment on this: why doesn't the government sort this out?

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 is government.

What you realize within that is that it's just not one body, it's 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's one of the reasons why I think the Sunday Times journalist picked that up. She is running with this because she thinks it's a really interesting story.

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'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. The UK is unique in almost not doing that.

There is a 5% benefit for UK content when actually they've had up to 20% in other cases. We're asking the question why was that done in this scenario?

Then 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, yeah, they have some significant challenges in relation to costs and, yeah, that that project will only go ahead if it meets IRR thresholds, effectively a warning that might not happen. Then 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. Our share price was doing very well until that announcement, and, yeah, it is highly disappointing, and we were very disappointed with the result.

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.

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. I tell you what: I would far prefer to fly the flag of Invinity and do our best to get to change than hide away and not do that and just say, well, it would have been 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 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, this wasn't anything to do with the 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 sort of unhelpful, shall we say, comparisons on those.

That's why our customers have gone back and said, look, that's not right, you're using incorrect data. I think there are a whole bunch of reasons as to why what came out wasn't fair.

Also a lot of the projects have said, look, this scoring system wasn't very clear, and that it was only really announced and even then quite opaque at the end of it. 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.

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. I want to create those thousand jobs up in Scotland.

I want to bring investment here. As I think the article says, proud British, I want it to work here, and there's no reason why it can't with a little bit of movement and sense that comes with it.

Thanks. I think this follows naturally on: there's a question here around UK manufacturing, and do we have the scale to deliver projects like Flexspace, also other large-scale projects, presumably refer to

It takes about a six-month lead time for us to scale, and that's typically the lead time on the stack manufacturing. We've got that stack line on order for the US that will be delivered shortly and will be capable of being commissioned and brought up to speed quite quickly.

We don't at the moment, but that's 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, but we 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 or apprenticeships. 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.

That's 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 and closed area.

Yes, it's useful to have a crane that will carry 30 tonnes, but actually we can do that with a forklift. Ultimately, we need a stable floor.

It doesn't need to be temperature-controlled. It is in Scotland, does need a little bit of heat, of course.

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 up and running.

Okay. Speaking of, there's questions around US manufacturing, Jonathan promised we were going to talk about, and we've duly been asked a couple of questions around it in terms of when are we going to hear more?

What are the plans?

Look, as Jonathan touched on, there are tremendous advantages to manufacturing in the US for the US market, both in terms of tax credits on the production side and tax refunds on the customer side. 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. 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, we're not starting fresh with new personnel.

We've got a team really to step in. I think we'll be announcing that final location once those contractual details are well in hand.

Brilliant. Okay.

Moving back to the numbers, there's a question here asking around sort of the uplift in admin overheads. Adam, perhaps you could just cover that off, give it more color?

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've completed Endurium and the joint development agreement. Those recoveries are no longer there from Gamesa given the joint product is pushed out to market.

The other half of it is increased in staff costs. Now, the increase in staff costs is the investment we're making to deliver that 60% cost reduction.

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.

The improvement in component costs, the improvement in component performance is what's driving those improved gross margins. It is investment we're making now to deliver on the numbers we have and the outlook we have out there.

Acknowledge the point, 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 reflected in that as well.

Thanks. 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. Is selling a battery a one-off or are there maintenance contracts?

How does that flow through the product?

The bulk of the revenue recognition, 95% plus is on delivery of the battery at the moment. There is an ongoing piece there in terms of a long-term service agreement that we recognize and recurring revenues over time.

For our bigger projects, the likes of Flexspace, what would make more sense for those sort of projects is a percentage-completion basis. That's what the industry tends to use, but certainly for our main deliveries, that the bulk is upon delivery of the Endurium product.

Thank you. This is a question that always comes up, it's because it's something that I think our shareholders are always keeping an eye on.

Competition: where are we seeing the main competition and how, in what format, in what markets?

Look, the number one commercial competition that we usually see is always lithium. It's 98% of the world's market.

That's from a competitive perspective, the thing that's 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 Flexspace project, for example, they had invited multiple bids.

They got sort of 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 credibly approach the market in the way that we have, at least as of yet.

Moving onto a different area, more corporate, there's three different questions asking the same thing here about is the idea of moving to the US or a US listing sort of something that's on the cards given the sort of clear focus on the commercial side, Jonathan, maybe?

Okay. We can maybe rephrase the question: is there a 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.

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. Move to US, no.

At the right point in time when we are the right size to be able to potentially attack that liquidity, yes, that is a possibility. Are we about to announce that in the near future?

I would say no.

A question about cost down, Matt, I'll probably come to you, is 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 six months and just order it later?

Is that something that we're seeing or something we're worried about?

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 commercial 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. Both those things mean that has to be installed as soon as humanly possible, and therefore waiting is not an option.

Fair enough. I can just see a question here just asking around bankability.

Clearly, it's something that we've been focusing on, track record, 11 gigawatt-hours was part of that. 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.

Are those discussions still ongoing, Adam?

Yeah. A 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 sort of 20, 30 megawatt-hours.

We've had a number of discussions around that. One of the key parts of that is then being able to put an 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're engaging with their project finance lenders, they can put non-recourse debt behind buying the product. Really, really important work stream.

Also, the benefit of Copwood is really important here, being able to take both the insurance providers, we're working with two in particular, and also the lenders, 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. Seeing positive momentum on that this year, Joe.

Perfect. You mentioned Copwood.

There's a couple of questions here asking what is going on with Copwood? When are we going to see that going live?

I know we've sort of briefly talked about it, but can you give a little bit more about what's between us and that project being switched on and making revenue? Jonathan?

Look, we had a conversation with a journalist earlier who asked us the same question. The response was met with a sort of a shrug and a nod.

We are in no different position than a lot of developers, and if you're ever wondering why projects slip, it's 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 first half of this year.

We certainly did all the work we could do our end and paid all the moneys across we had to actually in advance to make sure equipment could be ordered. Notwithstanding that, the slow progress has been seen by us as others.

I think they've done all the work in the road, they've done the connections up. We now sat here towards the end of September.

They're just doing the final work. Adam, what are we saying on

when we're anticipating switch-on? Current product fully delivered, just waiting on the substation.

By the end of the year, we'll have that project fully commissioned. We're expecting to get to the first commissioning test by the end of November, and then also to complete that process.

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.

Obviously very much looking forward to inviting investors on the call when we do get it connected. Yes,

absolutely.

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 maybe as part of cost down, but also in terms of security of supply. Matt, do you want to speak a little bit about that?

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. Secondary product meaning that we're 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.

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. We've greatly enjoyed where the prices are in the current market, and what we see is the current market price is being reinforced more and more by new entrants.

Market prices are likely to stay closer to where they are now than where they've been over the last decade. 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 off-take of exactly the product that we're going to need.

Brilliant. Okay.

There's a number of people that have referenced sort of recent eyes and look, someone's here referenced the monthly newsletter we put out with a picture of the trade commissioner for Europe at Flexspace. How are we feeling the engagement's going with UK, Canadian, and governments in general?

There seems to be a lot of meetings, but do we feel that those are actually bearing fruit and building relationships? Jonathan, maybe?

Look, maybe a shout-out first of all for our local MP in Bathgate, Kirsteen Sullivan. She could not have been more helpful towards us or more supportive.

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.

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. That's one of the challenges I think we face in the UK, maybe more so than elsewhere.

As a level where we are dealing with people, we get a very, very positive response, and I think we are making progress. Look, we've had a lot of funding from the UK government.

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, 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?

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

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. 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, we think we're likely to be able to take a good piece of that.

Lovely. I think we've managed to get through most of the Q&A there, I'll pass back to Ellie.

Of course, Ellie. 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 and 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.

There will be ups and downs along the way, but I'm confident the trajectory is in the right direction. I'm really excited for what the future could bring.

Thank you.