Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Q1 FY2022 Earnings Presentation
25 slides from Fluence Energy's earnings presentation, Feb 10, 2022
Slide 1: 1Q FY 2022 Earnings Presentation
1Q FY 2022 Earnings Presentation FEBRUARY 10, 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of federal securities laws with respect to Fluence Energy, Inc. (“Fluence” or the "Company"). These forward-looking statements include, without limitation, statements regarding futu
Slide 3: Market Outlook, Business Strategy
Market Outlook, Business Strategy Manuel Perez Dubuc CHIEF EXECUTIVE OFFICER © Fluence Energy, Inc.. All rights reserved. | 3
Slide 4: Key Takeaways
Key Takeaways 1 Continued to see very strong demand for our products Near-term headwinds as a result of supply chain disruptions, capacity constraints, 2 Covid-19 impacts and short-term cost overruns. 3 Immediate corrective actions taken to mitigate these issues As a result, we reaffirm our full fis
Slide 5: Very strong order intake for storage products and growth outlook for the entire ecosystem
Very strong order intake for storage products and growth outlook for the entire ecosystem ENERGY STORAGE PRODUCTS ENERGY SERVICES FLUENCE IQ Deployed + Deployed + Deployed + Contracted MW Contracted MW Contracted MW Contracted MW Contracted MW Contracted MW +7% Contracted 1.1 GW in +16% Jan 2022 aft
Slide 6: Q1 Business Update
Q1 Business Update Near term challenges identified with corrective actions executed Corrective Actions Taken CHALLENGES IMPLEMENTED ONGOING • Shipping rate increases • Passing through higher rates in new • Securing domestic transport • Shortage of shipping capacity contracts since Q4/FY21 availabili
Slide 7: New orders and strategic initiatives enable continued growth
New orders and strategic initiatives enable continued growth FLUENCE ENERGY STORAGE FLUENCE SERVICES FLUENCE IQ • Added 600 MW of new contracts in Q1 • Added 250 MW of new contracts • Added 335 MW of new contracts in Q1 in Q1 • Opened up transmission segment by • In January, (Post Q1) signed 1.1 GW
Slide 8: India Partnership – Positioning FLNC For Future Growth
EXECUTING OUR STRATEGY India Partnership – Positioning FLNC For Future Growth On January 20, Fluence and ReNew Power (NASDAQ: RNW) ReNew Power (Nasdaq: RNW) Significant market with India announced an agreement to form a is a leading renewable energy projected to reach 27 GW / 108 GWh new 50:50 joint
Slide 9: Digital Acceleration: Ecosystem Partner Pexapark
EXECUTING OUR STRATEGY Digital Acceleration: Ecosystem Partner Pexapark Fluence Ecosystem FLUENCE IQ DIGITAL PLATFORM PEXAPARK APPLICATION SUITE BID APP DISPATCH APP MANAGE APP PexaConnect PexaQuote INVEST APP 3RD PARTY APPS PexaQuant PexaMonitor Offer 3rd Party platform applications PLATFORM COMPON
Slide 10: Supply Chain Flexibility: Securing the next evolution in battery technology
EXECUTING OUR STRATEGY Supply Chain Flexibility: Securing the next evolution in battery technology Entered into an agreement with QuantumScape (NYSE: QS) to collaborate and test their solid-state battery technology in Fluence’s proprietary products and paves the way for a possible large scale supply
Slide 11: Performance & Guidance
Performance & Guidance Dennis Fehr CHIEF FINANCIAL OFFICER © Fluence Energy, Inc.. All rights reserved. | 11
Slide 12: Deploying capital in line with our investment framework
Deploying capital in line with our investment framework: strong focus on supply chain and talent acquisition ENHANCE UNIT ECONOMICS EXPAND RECURRING REVENUES • Pre-paid $60M into supply chain to • Investing into partnership with Pexapark secure 2022 and 2023 battery capacities to bring on third part
Slide 13: Historic seasonality of contracted MW and annual revenue
MEASURING FINANCIAL PERFORMANCE AGAINST HISTORIC SEASONALITY Based on historic seasonality, ~70% (1) FISCAL YEAR ENDS 9/30 of contracted MW and annual revenue Quarterly Seasonality Q1 Q2 Q3 Q4 is recognized in third and fourth aligned with historic 15% 15% 40% 30% figures quarters of any fiscal year
Slide 14: Key Performance Indicators
Order Intake Key Performance (AMOUNTS IN MW) THREE MONTHS ENDED DECEMBER 31, Indicators 2021 2020 CHANGE CHANGE % ENERGY STORAGE PRODUCTS Q1/FY22 CONTRACTED 600 96 504 525.0% Energy Storage Services • Very strong order intake for CONTRACTED 250 279 (29) (10.4)% energy storage products in light DIGIT
Slide 15: Total Revenue
Total Revenue Q1/FY22 Q1 Total Revenue LTM Total Revenue ($ in millions) ($ in millions) • Revenue increased 50% from Q1/FY21 to Q1/FY22 +9% – Strong growth in energy +50% $739 storage products $681 – Shipping and Covid related delays resulted in revenue $175 * shifting from Q1/FY22 to Q2/FY22 $116
Slide 16: Gross Profit & Adjusted Gross Profit
Gross Profit & Adjusted Gross Profit Q1 Gross Profit (Loss) LTM Gross Profit (Loss) (2) Q1/FY22 ($ in millions) ($ in millions) • Gross profit decline mostly $5 attributable to ($68) • Omicron variant related logistics delays in the US ($53) ($126) • Excess shipping costs Q1/FY21 Q1/FY22 LTM FY21 LT
Slide 17: Adjusted EBITDA
Adjusted EBITDA Q1/FY22 Q1 Adjusted EBITDA(1) LTM Adjusted EBITDA(1) Non-recurring expense adjustments ($ in millions) ($ in millions) mainly included in Q1/FY22 Adjusted EBITDA: • $31.3 million related to project charges which are compounding effects of the COVID-19 pandemic ($11) • $5.6 million re
Slide 18: Cash and Cash Equivalents
Cash and Cash Equivalents Q1/FY22 Investment Framework Cash and Cash Equivalents (1) Cash and cash equivalents ($ in millions) • Net cash used in operating activities $632 was ($191.6) million. Highlighted activities included, but not limited to: • ($60) million capacity pre- payments • Net cash use
Slide 19: FY 2022 total revenue guidance
FY 2022 total revenue guidance We are maintaining FY22 total revenue guidance of $1.1 billion to $1.3 billion Our guidance is based on contracted backlog of $1.9 billion as of December 31, 2021, but also takes into consideration potential delays in revenue recognition in FY22 based on shipping / Cov
Slide 20: Key Takeaways
Key Takeaways 1 Continued to see very strong demand for our products Near-term headwinds as a result of supply chain disruptions, capacity constraints, 2 Covid-19 impacts and short-term cost overruns. 3 Immediate corrective actions taken to mitigate these issues As a result, we reaffirm our full fis
Slide 21: Appendix
Appendix © Fluence Energy LLC. All rights reserved. | 21
Slide 22: Definitions
Definitions Pipeline -Represents our uncontracted, potential revenue from energy storage products, service, and digital software contracts currently in process, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog - Represent signed purchase orders or contrac
Slide 23: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED DECEMBER 31, 2021 2020 CHANGE CHANGE % NET LOSS $ (111,460) $ (12,496) $ (98,964) (792.0) % ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET 615 86 529 (615.1) INCOME TAX EXPENSE (BENEFIT) 358 685 (327) (47.7) DE
Slide 24: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED DECEMBER 31, 2021 2020 CHANGE CHANGE % TOTAL REVENUE $ 174,887 $ 116,233 $ 58,654 50.5 % COST OF GOODS AND SERVICES 228,036 111,434 116,602 104.6 GROSS PROFIT (LOSS) (53,149) 4,799 (57,948) (1207.5) ADD (DEDU
Slide 25: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED DECEMBER 31, 2021 2020 CHANGE CHANGE % NET LOSS $ (111,460) $ (12,496) $ (98,964) (792.0) % ADD (DEDUCT): AMORTIZATION OF INTANGIBLE ASSETS 918 800 118 14.8 STOCK-BASED COMPENSATION (a) 24,877 -- 24,877 n/a N