Funding Update and Proposed Business Restructuring

4 April 2016

(LSE: IEH; ADR: INGYY)

Intelligent Energy Holdings plc

Funding Update and Proposed Business Restructuring

Intelligent Energy, (the "Company"), the energy technology company, provides an update on funding and announces a proposed restructuring of the business.

Funding Update

Further to the announcement on 24 March 2016, discussions regarding the securing of funding continue. While there is no certainty that such discussions will be successful, the Board hopes to finalise these shortly and will provide an update to the market in due course.

Business Restructuring

Following an extensive review, the Company proposes to implement a material restructuring of its business. The objective is to focus Intelligent Energy on the most immediate and material market opportunities, while substantially and sustainably reducing the costs and cash burn of the business.

These opportunities are primarily based on the Company's class leading and power dense sub 1W to 20kW air cooled fuel cell technologies which are targeted towards small to medium-sized, highly distributed applications to power a range of off-grid devices. These include small embedded devices to medium auxiliary power units and range extenders for a range of end markets including drones and motive applications, but with continued focus on Distributed Power and Generation (DP&G) systems (currently operating in India with over 16MWh of clean electricity generated to date). 

The Company plans to maintain its core high power technology Intellectual Property portfolio, know-how and expertise appropriate for motive and high power DP&G applications. However, further investment and development would only be made when profitable and scalable opportunities arise in lockstep with the deployment of refuelling infrastructures.

As part of this proposed restructuring, and to align the business with this revised focus, there will be a number of changes across the Company. The proposals include the simplification of the organisational structure, the reduction of the number of jobs across several locations in which the Company operates and the closure of some office locations. It is envisaged that the majority of the proposed job reductions would take place in the UK. 

Consequently, the Company is proposing a reduction of circa 200 jobs. This proposed restructuring is expected to reduce costs and cash burn rapidly and significantly. Thus, the Company confirms that it has, today, commenced a period of consultation with its employees.

In parallel with this process, the Company also plans to review the scope of some existing and target contracts to ensure that over time they individually (and collectively) align with the Company's revised commercial focus.

The intention of the proposed restructuring is to focus the business on existing tangible commercial opportunities whilst preserving the Company's core capability to provide best of class, fuel cell based, power solutions to customers in its target markets.

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