Slide 1: 2Q FY2023 Earnings Presentation
2Q FY2023 Earnings Presentation M AY 1 1 , 2 0 2 3
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: 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: Record Q2'23 Performance
Record Q2’23 Performance Robust quarterly order intake and record revenue highlight strong performance Record Q2’23 Order Intake Q2’23 Revenue Recognized Long-term Services AUM3 at 3/31 $847M $698M 2.2 GW 1.1 GWh Solutions1, 2.8 GWh Services, Deployed ~2 GWh Energy >90% Cumulative Deployed Attachmen
Slide 5: Scale and Integrated Model Delivering Successful Results
PROGRESSING ON STRATEGIC OBJECTIVES Scale and Integrated Model Delivering Successful Results Deliver profitable growth • Raising FY23 guidance range to $1.85-$2.0B for revenue; $110-$135M for Adj. gross profit margin1 • Pulling forward profitability timeline; expect to be close to Adj. EBITDA breake
Slide 6: Strong demand and execution lead to increased 2023 revenue guidance
SUPPORTING FY’23 OBJECTIVE Strong demand and execution lead to increased 2023 revenue guidance; still expect to grow 35-40% in 2024 from higher 2023 revenue base Incremental ~$500M of revenue outlook implied across 2023 and 2024 compared to Q1 earnings call ~$11.2 IN C R E A S E IN P IP E L IN E & B
Slide 7: Initial IRA Regulations 'In-Line' with Expectations
SUPPORTING FY’23 OBJECTIVE Initial IRA Regulations ‘In-Line’ IR A E X PE C T E D IMPA C T S with Expectations, • Targeting to record IRA Section 45X tax credits of $10/kWh for manufacturing U.S. made battery modules More Clarity Still • $10/kWh expected to offset costs necessary for achieving econom
Slide 8: Fluence Publishes Inaugural Sustainability Report
Fluence Publishes Inaugural Sustainability Report Maintaining accountability through transparency Diversity, Equity and Inclusion FY’23 Target: 33% female hires End of Life Management Developing Fluence’s circular economy framework Conflict Minerals Ensure our actions do not contribute to the armed
Slide 9: 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. | 9
Slide 10: Second Quarter 2023 Financial Performance
Second Quarter 2023 Financial Performance Record quarterly performance driven by pulling forward legacy backlog HIGHLIGHTS All figures in $ million, unless specified 3 Q2’22 Q1’23 Q2’23 1. 104% YoY revenue growth in Q2’23, select projects ahead of Revenue 343 310 698 schedule pulling forward revenue
Slide 11: Raising FY'23 guidance; accelerating timeline to profitability
Raising FY’23 guidance; accelerating timeline to profitability Strong visibility to being close to Adj EBITDA breakeven in Q4’23 1. 100% of remaining expected FY23 Revenue in backlog All figures in $ million, unless specified 2. H2 revenue split - Q3 45-50% FY 2023 FY 2023 3. Maintain 35-40% revenue
Slide 12: 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. | 12
Slide 13: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 13
Slide 14: Definitions
Definitions ITEM DEFINITION Pipeline Represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software cont racts, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog Represent signed purchase orders or
Slide 15: 1st Half 2023 Financial Performance
1st Half 2023 Financial Performance Strong Year-On-Year Improvement signaling turnaround near completion All figures in $ million, unless specified H1’22 H1’23 HIGHLIGHTS Revenue 518 1,009 1. 95% YoY revenue growth for Adjusted Gross Profit* (20) 47 H1’23 with ~90% of revenue in H1’23 from legacy co
Slide 16: Project timeline acceleration drives higher Adj. Gross Profit Guide
Project timeline acceleration drives higher Adj. Gross Profit Guide 100% of 2023 revenue in backlog with firm battery supply; high confidence path to 2023 Adj. Gross Profit All figures in $ million, unless specified Prior Current Framework Framework FY 2022 Adjusted Gross Profit $(3) $(3) Incrementa
Slide 17: Q2'23 Ending Cash at $384M, No Recourse Debt
Q2’23 Ending Cash at $384M, No Recourse Debt, In-line with Prior Commitments Expect FY’23 to end with liquidity >$500M; ample liquidity 4 for cash needs for next 12 months All figures in $ million, unless specified DESCRIPTION Q2’23A FY’23 Framework Intact Total Cash1 as of $462 12/31/22 Financing -
Slide 18: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 ($ in millions) Q2'23 Q2'22 CHANGE CHANGE % NET LOSS (37.4) (60.7) 23.3 (38)% ($ in millions) Q2'23 Q2'22 ADD (DEDUCT): COVID-19 PANDEMIC – (1.7) INTEREST EXPENSE (INCOME), NET(a) (1.1) 0.5 (1.6) (320)% CARGO LOSS INCIDENT 0.8 4.4 INCOME TAX EXPENSE (BE
Slide 19: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations 1 ($ in millions) Q2'23 Q2'22 CHANGE CHANGE % NET LOSS (37.4) (60.7) 23.3 (38)% ADD (DEDUCT): AMORTIZATION OF INTANGIBLE ASSETS 1.4 0.9 0.5 56% STOCK-BASED COMPENSATION (a) 7.3 2.7 4.6 170% a. Included incentive awards that will be OTHER EXPENSES settled
Slide 20: 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 21: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations 1 ($ in millions) H1’22 H1’23 NET LOSS (172.2) (74.6) ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET 1.1 (1.8) INCOME TAX EXPENSE (BENEFIT) 0.5 (0.7) DEPRECIATION AND AMORTIZATION 2.9 5.1 STOCK-BASED COMPENSATION 27.6 15.8 OTHER EXPENSES COVID-19 pandemic
Slide 22: Upcoming Events Investor Relations Contact
Upcoming Events Investor Relations Contact May 11, 2023 Q2 Earnings Call Lexington May Vice President, Finance & Investor Relations May 16, 2023 Credit Suisse Renewables Conference NYC Lexington.May@fluenceenergy.com May 18, 2023 Evercore / Rho Motion Seminar Series NYC June 6-7, 2023 RBC EPI Confer