Slide 1: 1Q FY2025 Earnings Presentation
February 11, 2025 1Q FY2025 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements The statements herein and referenced on the Company's earnings call that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as a
Slide 3: Today's Agenda
Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 3 © Fluence Energy, Inc. All rights reserved. | 3
Slide 4: Q1'25 Executive Summary
Q1'25 Executive Summary • BESS market remains strong, led by Revenue Adjusted EBITDA2 Order Intake U.S. demand and our domestic content advantage. $778M $187M -$50M ~3.4 GWh Solutions Contract3, • Our first mover advantage (0.5 GWh Energy Storage Solutions1) Q1’25 GAAP Net Loss -$57M (~4.3 Gwh Gross
Slide 5: Lowering FY 2025 Revenue Guidance by $600 million
Lowering FY 2025 Revenue Guidance by $600 million (1) Now expect FY 2025 Revenue of $3.1 billion to $3.7 billion ($3.4 billion mid-point) vs. previous guidance of $3.6 billion to $4.4 billion ($4.0 billion mid-point) • $600 million reduction is due mostly to delays in the expected signing of contrac
Slide 6: Customer Roadshow Showcasing Breakthrough Technology on Feb 13th
Customer Roadshow Showcasing Breakthrough Technology on Feb 13th Full A/C block solution Industry-leading density Increased availability Lower upfront capital costs Beyond Burn Safety Standard Industry leading cyber security Lower operating costs across project’s life Breakthrough tech
Slide 7: Record Backlog Grew 38% Year-Over-Year Providing Continued Visibility to Future Revenue
Record Backlog Grew 38% Year- Over-Year Providing Continued Visibility to Future Revenue FLNC Chart in billions USD as of Dec 31, 2024 $5.1 $5.1 Future $3.7 Years $3.7 Backlog $2.4 Future Years Backlog $1.8 Current Current Year Year Backlog Backlog $2.7 $1.9 Backlog as of Q1 FY24 Backlog as of Q1 FY
Slide 8: Robust Global Utility-Scale Pipeline Underpins Strong Growth Outlook
Robust Global Utility-Scale Pipeline Underpins Strong Growth Outlook 60% Year-Over-Year Pipeline Growth FLNC Chart in billions USD as of Dec 31, 2024 26% PIPELINE $21.4 FLNC $21.4 Billion Pipeline increased 44% Utility Scale nearly $500M, to $13.4 Pipeline approx. $21.4B, quarter-to-quarter. 30% Pip
Slide 9: BESS Market Remains Robust and is being driven by AI, Data Center Growth, Domestic Manufacturing
BESS Market Remains Robust US BESS Growth Evident in and is being driven by AI, Data Interconnection Queues (GW) Center Growth, Domestic Hybrid Other 0.2 Manufacturing, and Sector- 29.9 Ntural Gas wide Electrification 7.5 Solar 91.8 Wind Battery • Expect US power demand to increase 33.4 44.7 Wind 30
Slide 10: FLNC Sees Minimal Tariff Exposure in 2025; Domestic Content Strategy to Benefit
FLNC Sees Minimal Tariff Exposure in 2025; Domestic Content Strategy to Benefit TRADE2 TA X P O L I C Y 2 A D V O C ACY 2 ACTION/POTENTIAL Product- IRA Sec. 48 Universal Foreign Advocate Ban OUTCOME Specific ITC/PTC Tariffs IRA Sec. 45X Entity of on Chinese Tariffs1 Domestic 25% Canada & Tax Credits
Slide 11: US Supply Chain Key to Enabling FLNC's Domestic Content Leadership
US Supply Chain Key to Enabling FLNC’s Domestic Content Leadership & Ability to Provide 100% Non-Chinese Product Ability to Mix and Match BESS Components Is Unique to FLNC and Enables Customers to Meet IRA Domestic Content Threshold Chiller / HVAC Manufacturing | Illinois Battery Module Manufacturin
Slide 12: Today's Agenda: Financial Update
Today’s Agenda 1 2 Financial Update Ahmed Pasha, SVP & CFO 3 © Fluence Energy, Inc. All rights reserved. | 12
Slide 13: First Quarter 2025 Financial Performance
First Quarter 2025 Financial Performance HIGHLIGHTS 1 Generated $187M revenue in Q1, 49% decrease from same quarter last year due to the All figures in $ million, unless specified2 Q1’24 Q1’25 pronounced backend nature Revenue 364 187 of expected revenue for full year 2025 compared to the Adjusted G
Slide 14: 2025 Guidance Update
2025 Guidance Update HIGHLIGHTS 1 Approx. 85% of midpoint of updated FY’25 revenue guidance is covered by backlog All figures in $ million, FY 2024 Prior FY 2025 Updated FY 2025 + YTD revenue recognized; unless specified Results Guidance Guidance guidance updated primarily due to delays in contracts
Slide 15: Implementing Targeted Action Plan to Mitigate Impact on Adj. EBITDA
Implementing Targeted Action Plan to Mitigate Impact on Adj. EBITDA of Contract Delays and Lower Margins 2025 Adjusted EBITDA $75 mn $600M rev. reduction x 12.5% gross margin $50 mn $30 mn $180 mn 10-12% Adj. gross margin vs 10-15% prior; $10M Tariff Impact Right sizing cost structure to align with
Slide 16: Solid Liquidity Profile; Significantly Improved From Prior Year
Solid Liquidity Profile; Significantly Improved From Prior Year All figures in $ million, unless specified As of 12/31/2024 $401 $1,112 $458 Available under Revolver and Supply Chain Facilities $57 $606 $654 $129 Working Capital Facilities $654 Ending Cash $477 Ending Cash 2 Liquidity as of Ending C
Slide 17: Key Takeaways
Key Takeaways 1 2 3 4 Adjusting fiscal year BESS Market remains Our first mover We believe that our guidance to reflect robust, driven by advantage strategy of rapid primarily contract rising demand establishing a U.S. innovation can delays and some and highlighted by US supply chain helps provide o
Slide 18: Today's Agenda: Q&A
Today’s Agenda 1 2 3 Q&A © Fluence Energy, Inc. All rights reserved. | 18
Slide 19: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 19
Slide 20: Definitions
Definitions Item Definition Backlog represents the unrecognized revenue value of our contractual commitments, which include deferred revenue and amounts that will be billed and recognized as revenue in future periods. The Company’s backlog may vary significantly each reporting period based on the ti
Slide 21: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 ($ in millions) FY23 Q1'24 Q2’24 Q3’24 Q4’24 FY24 Q1’25 ($ in millions) FY23 Q1’24 Q2’24 Q3’24 Q4’24 FY24 Q1’25 GROSS PROFIT 141.0 36.4 64.2 83.0 157.5 341.1 21.2 NET INCOME (LOSS) (104.8) (25.6) (12.9) 1.1 67.7 30.4 (57.0) Gross Profit Margin % 6.4% 10
Slide 22: Domestic Content Strategy Further Supported by Updated BESS Safe Harbor Table
Domestic Content Strategy Further Supported by Updated BESS Safe Harbor Table1 HIGHLIGHTS New Guidelines Prior Guidelines 1 Domestic content strategy Manufactured Manufactured enables FLNC to provide 100% Product Safe Product Safe Category Components Harbor % Category Components Harbor % non-Chinese
Slide 23: Fluence Battery Pack
Fluence Battery Pack Enables easier implementation of integrated solutions while commoditizing battery cells Fluence Mosaic Battery Cell FROM DCPM AESC The "brains" of the Pack System, the Cell Supplier 2 DCPM collects battery data for Cell Supplier 3 Battery Module communication with Fluence OS and
Slide 24: Rule of Thumb for Percentage of Completion Revenue Recognition
Rule of Thumb for Percentage of Completion Revenue Recognition Highlights ~70%+ of Contract Value Recognized Within 3-12 Months Percentage ~60% ~10% Timing is driven by when finished ~20% ~10% of Contract product is available to be shipped and title transferred Recognized as Revenue 3 -12 Months 3 -