Fuelcell Energy, Inc. · NASDAQ:FCEL
Fuelcell Energy — Investor Presentation (March 2020)
39 slides from Fuelcell Energy's investor presentation, Mar 30, 2020
Slide 1: Corporate And Strategy Update March 2020
Corporate And Strategy Update March 2020 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements with respect to the Company’s anticipated financial results and statements r
Slide 3: Purpose Statement
Purpose Statement Enable the world to live a life empowered by clean energy
Slide 4: A Global Leader in Fuel Cell Technology since 1969
A Global Leader in Fuel Cell Technology since 1969 Demand for Clean, Reliable Electricity Driving Adoption of Fuel Cell Technology GLOBAL CUSTOMERS 1 As of year ended October 31, 2019 GENERATION SERVICE & LICENSE FY 2019 Revenue $26.6M Advanced Technologies Product Company Highlights1 Revenue Driver
Slide 5: Company Products and Background
Company Products and Background
Slide 6: Long-term Macro Trends Supporting Clean Energy
Long-term Macro Trends Supporting Clean Energy Well Positioned to Meet Growing Demand 1 Source: Guardian 2 Sierra Club Sustainable Clean Energy Renewable energy exceeded coal for the first time by providing 23% of U.S. power generation, compared to coal’s 20% share1 in April 2019 FuelCell Energy to
Slide 7: Fuel Cell Technology
Fuel Cell Technology 101 Fuel Cell Technology Overview Fuel cells cleanly and efficiently convert chemical energy from hydrogen-rich fuels into electrical power and high quality heat via an electrochemical process The process is highly efficient and emits water rather than pollutants. as there is no
Slide 8: In House Fuel Cell Manufacturing Expertise
In House Fuel Cell Manufacturing Expertise FuelCell Energy utilizes proprietary designs and processes, along with state-of-the-art manufacturing equipment, to produce the fuel cell components that are the heart of the Company’s SureSource platforms 400 components are used to build one 350 kW fuel ce
Slide 9: Global Track Record
Global Track Record Utility-owned, rate-based Enhance resiliency 2.8 MW fuel cell on ¼ acre - ~23,000 MWh annually 2.2 MW solar on ~9 acres - ~3,000 MWh annually Power sold to grid Enhance resiliency Brownfield revitalization 15 MW on 1 ½ acres Only 12 mo. installation 5.6 MW with steam for company
Slide 10: Unrivaled Technology to Meet Future Energy Requirements
Unrivaled Technology to Meet Future Energy Requirements FuelCell Energy Technology: Winner for Ultra-Clean Baseload Power TECHNOLOGY BENEFITS Electrical Grid Combustion Based Equipment Solar and Wind Technologies SureSourceTM Fuel Cells NATURAL GAS BIOGAS Low CO2 emissions Low criteria emissions 24x
Slide 11: Technology Advantages and Compelling Economics
Technology Advantages Compelling Economics Avoids transmission (line losses, cost & permitting) Minimal land use / cost Site in high population density locations High Availability High availability supports economics High level of Renewable Energy Credits (REC’s) generated (3-5x the REC’s of solar)
Slide 12: FuelCell Energy Market Opportunity
FuelCell Energy Market Opportunity – Generation, Equipment Sales & Service Significant Potential to Expand Market Adoption Baseload is the largest segment of the U.S. electricity market U.S. Electricity Generation 4,076,675,000 Megawatt hours (MWh) U.S. Electricity Baseload: 77% 3,139,039,750 MWh Al
Slide 13: The Evolving Energy Grid
The Evolving Energy Grid Fuel Cell Technology a growing source of clean, reliable power for microgrid solutions, Carbon Capture and Energy Storage GENERATION Solar Power Nuclear Power Plant Thermal Power Plant Wind Power Plant TRANSMISSION Hydrogen Fuel Cities and Offices Smart Houses Industrial Pla
Slide 14: Diverse Set of Target Markets Creating a Significant Opportunity
Diverse Set of Target Markets Creating a Significant Opportunity FuelCell Energy targets several individual markets, in specific geographies that experience high energy costs, value clean distributed power generation and have supportive regulatory frameworks FuelCell’s Target Markets Target Market D
Slide 15: Multiple Use Cases
Multiple Use Cases FuelCell Energy’s platforms have been successfully deployed in these applications: Combined Heat & Power Microgrids On-Site Power Generation Grid Support Provides electric utilities with an economical, clean and scalable solution that supplies power where needed, enhancing grid re
Slide 16: Modern Urban Distributed Energy
Modern Urban Distributed Energy “These [fuel cell] projects aren’t just good for the environment, they are good for our economy. They create jobs. They help reduce asthma and breathing ailment rates for kids. They grow our tax base(1).” Bridgeport Mayor Bill Finch (term expired Jan-2016) The additio
Slide 17: Power Security with Microgrids
Power Security with Microgrids WOODBRIDGE UTILITY MICROGRID State-of-the-art utility microgrid platform supporting critical building loads with independent capabilities Replicable model for other customers evaluating similar structures
Slide 18: Translating R&D Efforts to Production of Advanced Fuel Cell Stacks
Translating R&D Efforts to Production of Advanced Fuel Cell Stacks Ever-improving Designs Are Reducing Costs, Making Fuel Cells More Economical 1 Source: Company Data Expected Service Life of Carbonate Fuel Stack1 (in years) Leading the industry in stack life among high temperature fuel cell supplie
Slide 19: Relaunched Effort in Europe Including Sub-Megawatt Solutions
Relaunched Effort in Europe Including Sub-Megawatt Solutions International Growth Opportunities Are Expanding, Including Large Sub-MW Applications Increasing European Distributed Power Generation Demand European SureSource solutions in Europe include megawatt scale, as well as sub-megawatt plants in
Slide 20: Introduction to Carbon Capture Technology
Introduction to Carbon Capture Technology Disruptive Carbon Capture Technology Opening New Markets FuelCell has a joint agreement with ExxonMobil Research and Engineering to develop, and commercialize a carbon capture system which utilize the Company’s carbonate fuel cell technology TBU 1 ~$120 bill
Slide 21: Distributed Hydrogen Technology & Toyota Project
Distributed Hydrogen Technology & Toyota Project The SureSource Hydrogen fuel cell power platform is configured to produce additional hydrogen beyond what is needed for power production; generating a stream of hydrogen suitable for industrial or transportation applications This application helps to
Slide 22: Solid Oxide Technology – Energy Storage Solution
Solid Oxide Technology – Energy Storage Solution FuelCell Energy is working towards the commercialization of solid oxide fuel cell technology. This R&D takes place at its Danbury and Calgary facilities and has the potential to add a sub-MW product offering, as well as long duration energy storage ca
Slide 23: The Transformational Strategy – Powerhouse
The Transformational Strategy – “Powerhouse”
Slide 24: Series of Steps Taken to Right-size and Strengthen Organization
Series of Steps Taken to Right-size and Strengthen Organization Recent Strategic Actions Position FuelCell Energy for Long-term Success Key Accomplishments June 2019 – February 2020 Tony Leo appointed CTO and Mike Lisowski appointed COO June Jason Few appointed CEO Fully implemented plan to achieve
Slide 25: Leverage True Potential of FuelCell Energy to Achieve Pathway to Profitable Growth
Strong manufacturing and engineering expertise; over 250 MW of power plants operating 24/7 Extensive Intellectual Property (IP) portfolio Culture of continuous technology innovation Unique business model resulting in long-term relationships Significant backlog with opportunity to increase revenue St
Slide 26: Seasoned Leadership Team with Deep Industry Expertise
Seasoned Leadership Team with Deep Industry Expertise Committed to Flawless Project Execution and Achieving Pathway to Growth Jason Few President and Chief Executive Officer Joined: 2019 Jennifer Arasimowicz EVP, General Counsel and Corporate Secretary Joined: 2012 Michael Bishop EVP, Chief Financia
Slide 27: Announcing Transformation Strategy: Powerhouse
Announcing Transformation Strategy: Powerhouse On a Three-year Execution Path to Transform The Company TRANSFORM – 2019 STRENGTHEN – 2020 GROW – 2021+ Build a solid financial foundation Strengthen the business and maximize operational efficiencies Capture growth by leveraging core strengths and part
Slide 28: Powerhouse Phase I: Transform
Powerhouse Phase I: Transform Financial Flexibility to Support Long-term Strategy Restructured our management: Appointed Jason Few as CEO, Michael Lisowski to COO and Anthony Leo to CTO Secured funding: $200M senior secured credit facility with Orion Energy Partners to support execution of current p
Slide 29: Powerhouse Phase II: Strengthen
Powerhouse Phase II: Strengthen Strengthen the Business and Maximize Operational Efficiencies Capital deployment: Continue to focus on disciplined capital deployment and obtaining lower-cost, long-term financing for completed generation projects Commercial excellence: Strengthen customer relationshi
Slide 30: Powerhouse Phase III: Grow
Powerhouse Phase III: Grow Capture Growth Opportunities by Leveraging Core Strengths and Partnerships Sales growth: Well positioned to increase product sales with key strategic customers; Innovation: Successful delivery of extended 7-year life stack modules; expanding commercialization of new techno
Slide 31: Financial Update
Financial Update
Slide 32: Recent Operational Highlights
Recent Operational Highlights Many strategic actions taken throughout 2019 position FuelCell Energy for long-term success Secured funding to provide immediate liquidity to execute inflight projects that will generate recurring cash flow upon completion Concluded engagement with Huron to assist with
Slide 33: First Quarter of Fiscal 2020 Financial Performance
First Quarter of Fiscal 2020 Financial Performance Improved Financial Performance Resulting from Business Transformation Efforts 1 Refer to reconciliation in appendix Backlog ($B) Net Loss, Loss from Operations and Adjusted EBITDA ($M) Adjusted EBITDA improved to $(0.2) million from $(12.1) million
Slide 34: Orion Energy Partners Funding in Place to Support Execution of Backlog
■ Generating Assets1 (MW) ■ Current Backlog (MW) Orion Energy Partners Funding in Place to Support Execution of Backlog 1 Purchase Power Agreements; 2 Forecasted annual contracted revenue Recurring Revenue with Increase in Backlog ($) Recurring Revenue2 from Current Backlog ($) □ Future Projects (MW
Slide 35: Maintaining Long-Term Targets and Goals
Maintaining Long-Term Targets and Goals Strengthened Financial Position Will Enable Profitable Growth FY 2022 Targets Grow Generation Portfolio (1) 100% Revenue Growth (1) Double-digit CAGR Adjusted EBITDA Deliver positive Adjusted EBITDA Keys to Business Plan Achievement: Execution on project backl
Slide 36: Key Investment Highlights
Key Investment Highlights Strengthened balance sheet with funding secured to deliver long-term projects to generate recurring revenue 1 New leadership committed to project execution, achieving financial milestones and operational efficiencies 2 On a three-year path of execution to Transform, Strengt
Slide 37: Thank You
Thank You Mi
Slide 38: Appendix
Appendix Mi
Slide 39: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation