Slide 1: 1Q FY2023 Earnings Presentation
1Q FY2023 Earnings Presentation FEBRUARY 9, 2023
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements The statements described herein 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 amended, and the Private Securities L
Slide 3: Today's Agenda
Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 Financial Update Manavendra Sial, SVP & CFO 3 Q&A © Fluence Energy, Inc. All rights reserved. | 3
Slide 4: Strong Q1'23 Performance to Start 2023
Strong Q1’23 Performance to Start 2023 Robust quarterly order intake; gross margin improvement continues Q1’23 Order Intake Q1’23 Revenue Recognized Long-Term Services AUM3 at 12/31 $856M $310M 2.0 GW Highest Quarter Ever Deployed 800 MWh Energy Storage Solutions2 >90% Cumulative Deployed Attachment
Slide 5: Strong Success in Implementing Turnaround
PROGRESSING ON STRATEGIC OBJECTIVES Strong Success in Implementing Turnaround Deliver profitable growth • Raising fiscal year 2023 guidance midpoint by $150M on revenue and $20M on adjusted gross margin. Develop products and solutions that our customers need • Ready to offer Northvolt batteries in o
Slide 6: Seeing Initial Benefit from IRA on Robust Pipeline
SUPPORTING FY’23 OBJECTIVE Seeing Initial Benefit from IRA on Robust Pipeline Expect IRA to drive US revenue growth in 2024 of ~40-50%, implying consolidated revenue growth of ~35-40% ~$10.3 • Strong demand at top of the funnel is a Billions USD driver of ~$10.3 billion pipeline, nearly 4x current b
Slide 7: Preferred Supplier of Storage Solutions; Strong Customer Relationships
SUPPORTING FY’23 OBJECTIVE FLNC the Preferred Supplier of Storage Solutions; Builds Strong Customer Relationships and Drives Long-Term Service Contracts Customers cite safety, performance, bankability, and supply chain assurance in selecting FLNC; deployed services attachment rate >90% Safety Perfor
Slide 8: Leveraging Software to Maximize Profit for our Customers
SUPPORTING FY’23 OBJECTIVE Leveraging Software to Maximize Profit for our Customers Driving Revenue Uplift Lowering Total Cost of Ownership MOSAIC OPTIMIZED BIDDING IN ERCOT NISPERA APM FOR FLUENCE AND THIRD-PARTY ENERGY STORAGE Awarded a framework contract with a non-related Providing real time mon
Slide 9: Executing On Our Transformation
SUPPORTING FY’23 OBJECTIVE Executing On Our Transformation 1. Enhance Risk Management • New contracting committee formed to ensure contracts underwritten meet necessary hurdle requirements; implementing stronger contractual compliance for our suppliers 2. Improve Execution • Continually improving pr
Slide 10: Today's Agenda
Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 Financial Update Manavendra Sial, SVP & CFO 3 Q&A © Fluence Energy, Inc. All rights reserved. | 10
Slide 11: First Quarter 2023 Financial Performance
First Quarter 2023 Financial Performance HIGHLIGHTS 78% YOY revenue growth driven by improved execution / supply chain 1. 78% YoY revenue growth in Q1’23, as teams executed, All figures in $ million, unless specified Q1’22 Q4’22 Q1’23 managed supply chain well; >95% of revenue recognized Revenue 175
Slide 12: FY'23 Guidance Revised Higher; Increased Confidence in 2024 Adjusted EBITDA Outlook
FY’23 Guidance Revised Higher; Increased Confidence in 2024 Adjusted EBITDA Outlook Increased guidance due to incremental demand and better supply chain visibility 1. ~99% of Revenue in backlog as All figures in $ million, unless specified of December 31st 2. Expect 40 / 60 revenue split FY 2023 FY
Slide 13: Today's Agenda
Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 Financial Update Manavendra Sial, SVP & CFO 3 Q&A © Fluence Energy, Inc. All rights reserved. | 13
Slide 14: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 14
Slide 15: Definitions
Definitions ITEM DEFINITION Pipeline Represents our uncontracted, potential revenue from energy storage products, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog Represent signed purchase orders or contractual min
Slide 16: Improved Battery Supply Drives Increased Adj. Gross Profit Guide
Improved Battery Supply Drives Increased Adj. Gross Profit Guide High confidence path to 2023 Adjusted Gross Profit guidance All figures in $ million, unless specified Prior Current Framework Framework FY 2022 Adjusted Gross Profit $(3) $(3) Incremental deals at or close to double-digit margins • Si
Slide 17: Q1'23 Cash at $462, No Recourse Debt, In-line with Commitments
Q1’23 Cash at $462, No Recourse Debt, In-line with Commitments Expect FY’23 to end with liquidity >$500M; ample liquidity for cash needs for next 12 months All figures in $ million, unless specified DESCRIPTION Q1’23A FY’23 Framework Total Cash as of 9/30/22 $540 Financing – Assumes no debt or equit
Slide 18: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations ($ in millions) Q1’22 Q4’22 Q1’23 NET LOSS (111.5) (56.2) (37.2) ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET 0.6 (1.2) (0.7) INCOME TAX EXPENSE (BENEFIT) 0.4 1.9 (0.6) DEPRECIATION AND AMORTIZATION 1.4 2.2 2.4 STOCK-BASED COMPENSATION (a) 24.9 9.1 8.5 O
Slide 19: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations ($ in millions) Q1’22 Q4’22 Q1’23 NET LOSS (111.5) (56.2) (37.2) ADD (DEDUCT): AMORTIZATION OF INTANGIBLE ASSETS 0.9 1.4 1.5 STOCK-BASED COMPENSATION (a) 24.9 9.1 8.5 a. Included incentive awards that will be settled in OTHER EXPENSES (b) shares and awar
Slide 20: Upcoming Events Investor Relations Contact
Upcoming Events Investor Relations Contact FEB 9, 2023 Q1 Earnings Call Lexington May Vice President, Finance & Investor Relations Lexington.May@fluenceenergy.com FEB 27, 2023 Credit Suisse Energy Summit Vail FEB 28, 2023 BofA Power, Utilities, Clean Energy Conference Boston MAR 21, 2023 Piper Sandl