In accordance with the equity financing line agreement entered into with Kepler Cheuvreux on 13 September 2017, McPhy announces today that it has drawn down:

• 30,000 shares
• At a price of €3.80

As a result, the share capital amounts to €1,763,796.84 represented by 14,698,307 shares.

In accordance with the equity financing line agreement entered into with Kepler Cheuvreux on 13 September 2017, McPhy announces today that it has drawn down:

• 30,000 shares
• at a price of €4.29

As a result, the share capital amounts to €1,760,196.84 represented by 14,668,307 shares.

The confidence of our partners and the substantial opportunities offered by the carbon-free hydrogen market confirm our medium-term growth prospects.”

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, states: “The beginning of 2019 has confirmed McPhy’s excellent sales momentum, with over 7 million euros in orders recorded in France and abroad at the end of July.

Among our commercial successes, we notably received orders for 7 stations regarding the deployment of hydrogen mobility in France, an order for heavy-duty vehicle mobility in Germany and the largest ever order for 11 electrolyzers for the Bangladesh Meteorological Department.

Our technological lead on the hydrogen mobility market will be strengthened with the launch of our “Augmented McFilling” hydrogen station. The latter will offer innovative, proprietary and patented architecture managed by McPhy’s smart supervision software that will make the station dynamically reconfigurable.

In June, alongside our partners ENGIE and SMT-AG (the Artois-Gohelle transport authority), we inaugurated, in the Hauts-de-France Region, France’s first refueling station for hydrogen buses, which is equipped with McPhy technologies.

The confidence of our partners and the substantial opportunities offered by the carbon-free hydrogen market confirm our medium-term growth prospects”.

McPhy recorded a 23% increase in revenues to €4.3 million in the first half of 2019, compared with €3.5 million in the first half of 2018, notably driven by the delivery of the station for refueling the first 100%-hydrogen bus line in France. The extra costs incurred by this first reference for McPhy impacted the increase in other operating expenses (€3.0 million in the first half of 2019 versus €2.5 million in the first half of 2018).

Personnel costs totaled €3.5 million versus €3.1 million in the first half of 2018 (+€0.4 million). This increase was due to the strengthening of the teams, notably the operational and sales teams, to absorb the growth in activity during the first half of the year and prepare for the acceleration expected in the second half. At June 30, 2019, McPhy had a cash position of €8.7 million.

Lastly, within the framework of the Pushy project, in accordance with the contract terms and as expected by McPhy, Bpifrance Financement informed the Company, in July 2019, of the cancellation of the repayment of the debt on the balance sheet for €3.5 million (including €0.4 million of debt discounting). This cancellation will be written down in accounts during the second half of 2019.

The following table indicates the value of the loans and financial debt before and after the cancellation of the repayment of this debt.

Orders booked and announced during the first half of 2019:

• Order for 6 stations for the deployment of hydrogen mobility as part of the “EAS-HyMob” project in the Eure and Calvados departments (Normandy)
• Order for a 40 kg per day 30-bar electrolyzer for a hydrogen station in Chambéry, as part of the Auvergne-Rhône-Alpes region’s “Zero Emission Valley” project
• Order for 2 MW of high-power electrolysis in Germany for the Energy market, taking the high-power electrolysis capacity implemented by McPhy to 16 MW
• Largest ever order for McPhy’s PIEL product range, with 11 electrolyzers for the Bangladesh Meteorological Department

Orders booked in July 2019:

• Order for a McFilling 200-350 station in Germany, as part of a similar project to the one undertaken with the SMT-AG transport authority, following an order for the deployment of a McLyzer 400-30 electrolyzer from the same client at the beginning of the year
• Order for an additional station, as part of the “EAS-HyMob” project in Normandy, taking the total number of McFilling hydrogen stations already or currently being installed to 23, thus strengthening McPhy’s solid positioning on the carbon-free mobility market

• Patent filed for the “Augmented McFilling” hydrogen station for heavy-duty vehicles, which is able to address the massive hydrogen needs inherent to the necessary decarbonization of heavy-duty transport and long-distance vehicles (trains, trucks and buses)
• Innovative architecture that combines compression, storage, cooling and vehicle delivery functions
• Managed by McPhy’s smart supervision software, which makes the station dynamically reconfigurable for an infinite number of usage scenarios and real-time adaptation to clients’ requirements with no capacity limits

• In the presence of the project’s partners, on Friday June 21 in Houdain (Hauts-de-France Region), the Artois-Gohelle Transport Authority (SMT-AG) inaugurated France’s first refueling station for hydrogen buses
• The entire clean hydrogen production, storage and distribution chain is equipped with McPhy technology
• A genuine innovation in France, this 100% hydrogen bus line and its dedicated refueling station are precursors of the “zero emission mobility” revolution that is becoming increasingly widespread in France, Europe and globally

Upcoming financial communication

2019 annual revenues: Tuesday January 28, 2020, after market.

By opting for hydrogen mobility, the SMT-AG is combining passenger comfort and service continuity while helping reduce atmospheric pollution and improve public health.”

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, states: “We are proud to contribute, with our technologies and products, in this innovation in France that has enabled us to set up, in the Hauts-de-France region of northern France, the first McPhy station for hydrogen buses. With its state-of-the-art research and innovation and first-rate industrial infrastructure, McPhy provides its expertise in producing and distributing hydrogen. Our McLyzer electrolyzer will produce on site and from renewable electricity of certified French origin supplied by ENGIE, the clean hydrogen for a high-capacity McFilling hydrogen refueling station with a high service rate. The public transport sector is in the midst of a revolution. By opting for hydrogen mobility, the SMT-AG is combining passenger comfort and service continuity while helping reduce atmospheric pollution and improve public health. We would like to thank the SMT-AG and our client, ENGIE, via its subsidiary GNVERT, for their trust”.

The SMT-AG has attributed to ENGIE, via its subsidiary GNVERT, the design, supply, installation and maintenance of the Houdain-Divion hydrogen gas distribution station. It will enable the refueling of six hydrogen buses that will be deployed on the new BHNS (High Level Service Bus) bus line connecting Bruay-La-Buissière and Auchel.

This innovative project is equipped with McLyzer and McFilling technologies. Clean hydrogen will be produced on site by electrolysis, from renewable electricity of certified French origin, before being distributed by the station. Fifteen minutes of refueling will give the buses over 300 km of autonomy.

In its current configuration, the McPhy station can produce and deliver more than 200 kg of clean hydrogen a day. Its capacity can be increased by 30% without changing the facility’s total surface area, if required by the SMT-AG’s future needs.

A genuine innovation in France, this 100% hydrogen bus line and its dedicated refueling station are precursors of the “zero emission mobility” revolution that is becoming increasingly widespread in France, Europe and globally.

Upcoming financial communication
2019 first-half results: Tuesday 30 July 2019 after market close

2019 first-half results: Tuesday 30 July 2019 after market close

This innovative combination of shared functions and dynamic reconfiguration of the station’s operating scheme allows us to provide our customers with an infinite number of usage scenarios, adapted to their needs in real time and in a perfectly transparent way, without capacity limits.

Pascal Mauberger, McPhy’s Chairman and Chief Executive Officer, states: “Augmented McFilling by McPhy is a unique design. More than a hydrogen station, it is an intelligent system combining a proprietary, patented architecture with software that makes it dynamically reconfigurable. This innovative combination of shared functions and dynamic reconfiguration of the station’s operating scheme allows us to provide our customers with an infinite number of usage scenarios, adapted to their needs in real time and in a perfectly transparent way, without capacity limits.

Our smart supervision software greatly increases the availability and flexibility of hydrogen stations, and therefore meets the 24/7 needs of heavy transports, while optimizing the system’s energy efficiency; as well as investment and operating costs.

Following the launch of the ‘Augmented McLyzer’ range in 2018, our new generation of ‘Augmented McFilling’ stations allow us to offer a complete range of smart, modular, without capacity limits low-carbon hydrogen production and distribution solutions, already ’fit for purpose’ and ready for the future.”

Hydrogen is the only technology which is already scaled-up, capable to meet, in a competitive way, the massive needs induced by the necessary decarbonation of heavy transportation.

As a specialist in hydrogen solutions for the energy revolution, McPhy Group has focused its research and innovation on solutions that can produce and deliver the hundreds, or thousands, of kilos of low-carbon hydrogen required every day to successfully achieve “zero-emissions” transportation.
A true concentration of technological and digital advances, “Augmented McFilling” is a patented, proprietary hydrogen station architecture that mutualizes compression, storage, cooling and vehicle delivery functions. This unique architecture is managed by McPhy’s smart supervision software, which makes “Augmented McFilling” stations dynamically reconfigurable.

The station thus defines autonomously (without human input and without interruption of operation) its optimal operating scheme and (re)directs the flows, from production to vehicles delivery, compression and storage, to deliver hydrogen at the best cost while ensuring continuity of service and a maximum availability rate.

This unique design of proprietary architecture and software intelligence:

• allows the station to perfectly fit with the customer needs in real time,
• is modular, with no capacity limits: 2,000, 4,000, 10,000 kg per day and beyond,
• “Bigger scale, lower costs”: the scaling-up and industrialization of hydrogen stations will reduce investment and operating costs and democratize hydrogen mobility for all types of transport.

The Hannover Messe is the world’s largest technology and innovation fair in the industry. It attracts more than 225,000 trade visitors from 100 countries.

At the heart of the hydrogen pavilion, McPhy Group is presenting a preview of its “Augmented McFilling” solution, and invites you to come:

1-5 April, Hall 27, Stand C70
Invitation to attend the fair free of charge (registration required): https://www.hannovermesse.de/ticketregistration?auvzk

Attend McPhy’s presentations:

• Tuesday 2 April 13.40 – 14.00 | Technical Forum | “Launch of Augmented McFilling, a dynamically reconfigurable architecture to support the decarbonation of heavy transports“ – Bertrand AMELOT, EVP Sales & Marketing
• Wednesday 3 April 11.40 – 12.00 | Public Forum | “Unlimited Hydrogen: towards a zero-emission society” – Pascal MAUBERGER, CEO
• Wednesday 3 April 15.00 | Technical Forum | “Elevator Pitch | Electrolysis technology” – Bertrand AMELOT, EVP Sales & Marketing

2019 first-half results: Tuesday 30 July 2019 after market close

We are determined to maintain this focus with clearly identified priorities: product development, strengthening our marketing in key areas, winning new markets and signing partnerships.

Pascal Mauberger, McPhy’s Chairman and Chief Executive Officer, commented: “As announced, our results for 2018 were affected by delays in the finalization of several orders and by the extension of the duration of certain existing projects for our clients.
Our teams remain mobilized to continue building McPhy’s technological leadership by launching new products such as the ‘Augmented McLyzer’ generation of electrolyzers, which will enable us to offer innovative solutions on a scale that matches our clients’ needs. We have also signed an agreement for our first hydrogen bus fueling station in France, creating a flagship reference in mass mobility. In addition, the industrial and commercial partnership agreement with EDF signed in 2018 is now fully operational and is manifesting itself in joint tender bids.
The early months of 2019 have shown that our strategy is bearing fruit, with more than €5 million in orders received. This is why we are determined to maintain this focus on growth with clearly identified priorities: product development, strengthening our marketing in key areas, winning new markets and signing partnerships. We are convinced that this strategy will allow McPhy to continue to grow and maintain its leadership in the fast-expanding market for low-carbon hydrogen.”

The increase in external costs and provisions was due to delays in the finalization of several orders, the extension of the duration of certain projects and additional costs incurred in the installation phases of these initial reference projects for McPhy. This resulted in an expected 47% drop in operating income in 2018 compared to 2017, to -€9.4 million.
The lessons learned on these first contracts have been factored in for contracts due to be delivered from 2019 on, and provisions have been made for additional costs to neutralize their impact on 2019 figures. Furthermore, despite the revenue decline, McPhy continued to strengthen its research and innovation efforts.
At December 31, 2018, McPhy had cash assets of €14.9 million, boosted by transactions to strengthen capital carried out in 2018.

Download, below, the full PR to find out more about the “2018 Highlights” & “Confirmation of a return to growth in 2019”.

We are delighted with how 2019 has started for us, since we have achieved the positive top-line momentum we predicted. These firm orders are a ringing endorsement of our product strategy in our three key hydrogen markets—mobility, industry and energy.

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, commented: “We are delighted with how 2019 has started for us, since we have achieved the positive top-line momentum we predicted. These firm orders are a ringing endorsement of our product strategy in our three key markets.

In the zero emission mobility market, we logged an order for six McFilling 20-350 stations in the framework of the EAS-HyMob project, which shows that our offering is well-suited to France’s strategy for deploying hydrogen refueling infrastructure.

In Germany, we reached a major technological milestone by marketing our first electrolyzer fitted with “high current density” electrodes co-developed with De Nora. The electrolyzer will double the volume of hydrogen produced. These two new megawatts will lift to 16 MW the high-power electrolysis capacity we have implemented. It is crucial for the large-scale decarbonization of applications in the industry, mobility and energy sectors.”

With over €5 million in orders received, it is a positive start to the year for McPhy:

McPhy has just logged an order for six stations from SIEGE 27 and SDEC Energie (2)  to support the roll-out of hydrogen mobility solutions in the Eure and Calvados departments as part of the EAS-HyMob Normandy project (3). These stations are the first in the plan, which will ultimately feature 15 hydrogen refueling units and are due to be commissioned as captive hydrogen vehicle fleets are introduced.

As previously announced, McPhy has received an order for a next-generation 40kg/day 30-bar electrolyzer, which will be delivered this year. It is intended for a hydrogen station to be built in Chambéry by ATAWEY(4) as part of the Zero Emission Valley project (5) in the Auvergne-Rhône-Alpes region. Under the project, 20 stations are due to be installed across the region, including 15 with electrolyzers (6). It aims to make Auvergne-Rhône-Alpes Europe’s leading region in the deployment of hydrogen.

These new projects increase to 21 the number of McFilling stations installed or currently being installed, together representing a daily potential of 64,500 km in zero emission mobility.

In the energy market, McPhy received the first payment for a Power to Power application in Germany in respect of a McLyzer 400-30 installation. This is the first McLyzer 400-30 featuring McPhy’s high-density current electrodes co-developed with De Nora, its industrial partner. This 2 MW project lifts to 16 MW the high-power electrolysis capacity built by McPhy.

Lastly, McPhy recently received an order from the Bangladesh Meteorological Department for 11 electrolyzers from the PIEL line, which are due to be delivered during 2019. These electrolyzers will be used to inflate balloons for weather probes. This is the largest order ever placed for McPhy’s PIEL line of products.

Together, all these firm orders are worth over €5 million. These commercial successes demonstrate that the delayed orders initially anticipated in 2018 have now materialized, and that the Group’s top-line business momentum is right on track.

FY 2018 results on Tuesday, March 12, 2019 (after the market close)

[1] 2018 revenue press release dated January 22, 2019

[2] This project is supported by European Union funding via the European Innovation and Networks Executive Agency (INEA) as part of the Connecting Europe Facility – Transports (CEF-T) infrastructure program.

[3] https://eadymob.normandie.fr

[4] http://www.atawey.com

[5]    https://www.auvergnerhonealpes.fr/uploads/Presse/91/203_486_CP-12-20-Zero-Emission-Valley-reconnu-au-niveau-europeen.pdf

[6]    https://www.auvergnerhonealpes.fr/uploads/Presse/91/203_486_CP-12-20-Zero-Emission-Valley-reconnu-au-niveau-europeen.pdf