Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Q4 2023 Earnings Presentation
22 slides from Fluence Energy's earnings presentation, Nov 29, 2023
Slide 1: 4Q FY2023 Earnings Presentation
NOVEMBER 29, 2023 4Q FY2023 Earnings Presentation
Slide 2: Disclaimer
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: Q4'23 Performance Highlights
Q4’23 Performance Q4’23 Order Intake Q4’23 Revenue Recognized • Strong order intake and execution leads to achieving $737M $673M 2.1 GWh Solutions2, 1.6 GWh Services, Deployed ~1.5GWh Energy $20M in Adj. EBITDA1 ~1.8 GW Digital Storage Solutions3 • Total Cash6 increased to $463 million as of 9/30, u
Slide 4: Today's Agenda
Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 3 © Fluence Energy, Inc. All rights reserved. | 4
Slide 5: Delivering on FY 2023 Commitments
Delivering on FY 2023 Commitments ✔ Grew Annual Revenue by 85% from prior year ✔ Achieved quarterly profitability ✔ Accelerated legacy backlog recognition ✔ Diversified supply chain and secured domestic manufactured battery cells ✔ Initiated digital replatforming ✔ Integrated Nispera platform ✔ Buil
Slide 6: Positive Adj. EBITDA Achieved; Focus on Adj. EBITDA and ARR Growth
Transformation Complete Positive Adj. EBITDA Achieved; Focus on Adj. EBITDA and ARR Growth DELIVER PROFITABLE GROWTH USE FLUENCE DIGITAL AS A COMPETITIVE DIFFERENTIATOR AND MARGIN DRIVER • We exceeded our fiscal 2023 guidance for both revenue and adjusted gross profit. • Targeting around $80 million
Slide 7: Robust Utility Scale Market Outlook Driving Strong Demand
Robust Utility Scale Market Outlook Driving Strong Demand Expected 35-40% Year Over Year revenue growth From FY’24 to FY'25 ~$13.0 Pipeline as of 9/30/23 Strong Order Intake > 50% increase in Eight consecutive quarters of order Pipeline year over year intake outpacing revenue recognized ~$8.5 Pipeli
Slide 8: Setting the Standard for Continuous Product Development
Setting the Standard for Continuous Product Development Gridstack Pro OS7 Built for the next era of utility-scale Controls software upgrade to support the increasing energy storage size and complexity of grid-connected storage Fluence Battery Pack Deployment, Foundation for maintenance and the futur
Slide 9: Strong Year End Balance Sheet and Ample Working Capital Facilities
Strong Year End Balance Sheet and Ample Working Capital Facilities to Enable FY'24 Guidance All figures in $ million, unless specified Amount FY’23 Total Cash1 $463 Highlights Supply Chain Financing Facility2 $100 • Ended FY'23 with >$500M liquidity • Replacing $200M RCF with $400M ABL Revolving Cre
Slide 10: Fluence Digital + Services Targeting around $80M of ARR for FY24
Fluence Digital + Services Targeting around $80M of ARR for FY24 Representing approximately a 40% increase from prior year Strong Visibility To Achieving Due to: • > 90% cumulative Services attachment rate on BESS projects • 100% attachment rate for Nispera on BESS projects • Mosaic in 3 markets: 1)
Slide 11: Today's Agenda: Financial Update
Today’s Agenda 1 2 Financial Update Manavendra Sial, SVP & CFO 3 © Fluence Energy, Inc. All rights reserved. | 11
Slide 12: Fourth Quarter 2023 Financial Performance
Fourth Quarter 2023 Financial Performance HIGHLIGHTS Transformation complete, business achieves profitability in Q4'23 1. 52% YoY revenue growth in Q4’23, reflecting strong demand, and improved execution All figures in $ million, unless specified3 Q4’22 Q3’23 Q4’23 2. Delivered double digit adjusted
Slide 13: Generated Cash in Q4 FY'23; Investments Driving FY'24 Cash Usage
Generated Cash in Q4 FY’23; Investments in Technology Driving FY’24 Cash Usage; Expect Free Cash Flow Generation in FY’25 Ample liquidity4 to Meet FY’24 Guidance All figures in $ million, unless specified Description Q4’23 FY’24 FY’24 Framework Total Cash1 as of 6/30/23 416 463 Financing $0 - Invest
Slide 14: Initiating FY'24 guidance
HIGHLIGHTS Initiating FY’24 guidance 1. Expected FY’24 revenue split Increase of $300M revenue vs prior FY’23 guide + FY’24 implied growth H1 30% / H2 70%, better than previously communicated, expect negative Adj. EBITDA in Q1 due FY 2024 All figures in $ million, unless specified FY 2023 to project
Slide 15: FLNC is the Preferred Choice for Utility Scale BESS Integration
FLNC is the Preferred Choice for Utility Scale BESS Integration Services Digital Global BESS capacity by top 10 integrators (MW) software Installed Contracted 8000 7000 Power electronic 6000 Safety & engineering and 5000 Cybersecurity innovation 4000 3000 2000 1000 Bankability Scale and supply 0 cha
Slide 16: Today's Agenda: Q&A
Today’s Agenda 1 2 3 Q&A © Fluence Energy, Inc. All rights reserved. | 16
Slide 17: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 17
Slide 18: Definitions
Definitions ITEM DEFINITION Pipeline Represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog For our energy storage products and s
Slide 19: FY 2023 Financial Performance
FY 2023 Financial Performance Strong Year Over Year Improvement All figures in $ million, unless specified3 FY22 FY23 HIGHLIGHTS Revenue 1,199 2,218 1. Significant year over year improvement driven by higher Adjusted Gross Profit1 (54) 147 volumes resulting in 85% increase in revenue Operating expen
Slide 20: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 ($ in millions) Q2'22 Q3’22 Q4’22 FY22 Q2’23 Q3'23 Q4’23 FY23 Note 1: May not reconcile to financial statements due to rounding. GROSS PROFIT (LOSS) (a) Certain prior period amounts have been reclassified to conform to the current (14.8) (5.2) 10.7 (62.
Slide 21: Fluence Battery Pack
Fluence Battery Pack Enables easier implementation of integrated solutions while commoditizing battery cells Fluence Mosaic Battery Cell FROM AESC DCPM Cell Supplier 2 The "brains" of the Pack System, the Cell Supplier 3 Battery Module DCPM collects battery data for Fluence OS Cell Supplier 4 commun
Slide 22: Upcoming Events Investor Relations Contact
Upcoming Events Investor Relations Contact November 29, 2023 Q4 Earnings Call Lexington May January 4, 2024 Goldman Sachs Energy, CleanTech Vice President, Finance & Investor Relations & Utilities Conference Miami Lexington.May@fluenceenergy.com January 9, 2024 UBS Global Energy & Utilities Winter C