Slide 1: 4Q FY2024 Earnings Presentation
November 26, 2024 4Q FY2024 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: Executive Summary
Executive Summary Revenue Adjusted EBITDA2 Order Intake • Met or exceeded FY'24 financial guidance metrics Q4 $1.2B Q4 $87M (3.6 GWh Energy Q4’24 GAAP Q4 $1.2B • Finished FY'2024 with approximately Storage Solutions1) Net Income $68M ~4.6 GWh Solutions3, 3.2 GWh Services, $963M of liquidity2 FY’24 ~
Slide 5: Robust Energy Storage Demand; added ~$1.2B Order Intake During Q4'24
Robust Energy Storage Demand; added ~$1.2B Order Intake During Q4'24 We Believe that U.S. Demand for Energy Storage Will Not be Significantly Impacted By Change in Political Landscape Demand for electricity is rising Renewables + Storage is one Declining cost of energy of the fastest sources of stor
Slide 6: Backlog Grew 55% Year-Over-Year Providing Continued Visibility to Future Revenue
Backlog Grew 55% Year-Over-Year Providing Continued Visibility to Future Revenue FLNC Chart in billions USD as of Sept 30, 2024 $4.5 $2.9 Backlog Q4 FY23 Backlog Q4 FY24 * Refer to Backlog definition within appendix. © Fluence Energy, Inc. All rights reserved. | 6
Slide 7: Robust Global Utility Scale Pipeline Underpins Strong Growth Outlook
Robust Global Utility Scale Pipeline Underpins Strong Growth Outlook 60% Year Over Year Pipeline Growth PIPELINE FLNC Chart in billions USD as of Sept 30, 2024 Pipeline increased 26% nearly $500M, to $20.9 FLNC approx. $21B, $20.9 Billion 44% quarter-to-quarter, Utility Scale $13 Pipeline even after
Slide 8: 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 Chiller / HVAC Manufacturing Illinois Battery Module Manufacturing & Integration Battery Cell Utah Manufacturing Tennessee Inverter Manufacturing South Carolina Enclosure & DCPM Manufactu
Slide 9: US Manufactured Battery Cells Provide Advantage Over Peers
US Manufactured Battery Cells Provide Advantage Over Peers • Line 1 at AESC’s Tennessee facility started producing its initial 305-amp hour battery cells • FLNC made strategic decision to upgrade Line 2 to 530-amp hour cell • Provides superior density, better degradation and more value to customers
Slide 10: Today's Agenda: Financial Update
Today’s Agenda 1 2 Financial Update Ahmed Pasha, SVP & CFO 3 © Fluence Energy, Inc. All rights reserved. | 10
Slide 11: Fourth Quarter 2024 Financial Performance
Fourth Quarter 2024 Financial Performance HIGHLIGHTS Continued improvement in Gross Profit Margins 1 Generated $1,228M revenue in Q4, 82% increase from same quarter last year. All figures in $ million, unless specified2 Q4’23 Q4’24 Revenue 673 1,228 2 Delivered $159M adjusted gross profit1 , an incr
Slide 12: Fiscal 2024 Financial Performance
Fiscal 2024 Financial Performance HIGHLIGHTS First Profitable Year; Delivered Profitable Growth Generated ~$2.7B revenue, a 1 22% increase from the prior FY’24 FY’24 year. All figures in $ million, unless specified2 FY’23 Actuals Guidance Actuals 2 Delivered 12.9% adjusted Revenue 2,218 2,700 – 2,80
Slide 13: Continued GAAP Gross Profit Margin Improvement on Rolling LTM Basis
Continued GAAP Gross Profit Margin Improvement on Rolling LTM Basis, Reflecting Strong Project Execution Double Digit Gross Profit Margins for Fifth Consecutive Quarter Last 12 Months GAAP Gross Margin % 12.1% 12.6% 9.0% 7.3% 6.4% 3.8% 2.9% 0.2% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24
Slide 14: Adj. EBITDA Improvement Reflects in Increased Free Cash Flow
Adj. EBITDA Improvement Reflects in Increased Free Cash Flow . Adjusted EBITDA Free Cash Flow 78 72 -115 -61 2023 2024 2023 2024 *Adjusted EBITDA and Free Cash Flow are Non-GAAP figures. Refer to Appendix for reconciliation to the most directly comparable GAAP financial measures. © Fluence Energy, I
Slide 15: Initiate FY 2025 Guidance
Initiate FY 2025 Guidance HIGHLIGHTS 1 65% of midpoint of FY’25 revenue guidance is covered by backlog; aligned with same All figures in $ million, FY 2024 percentage coverage as prior FY 2025 Guidance unless specified Results year 2 Expect 10-15% adjusted gross $2,699 $3,600-$4,400 profit margin1 f
Slide 16: Solid Liquidity Profile, Significantly Improved versus FY 23
Solid Liquidity Profile, Significantly Improved versus FY 2023 All figures in $ million, unless specified $425 $963 $275 Available $444 Available For Letters of under Revolver Credit and Supply Chain Facilities $663 $200 Available $519 $19 $150 Available For Letters of to Draw Credit $519 Ending $46
Slide 17: Anticipate Additional Working Capital in FY '25
Anticipate Additional Working Capital in FY ‘25; Multiple Options Available to Fund $300M Working Capital Need Driven by: • Strong Revenue Growth: Incremental working capital to support ~50% growth in revenue in FY ‘25 • Domestic Manufacturing Strategy: Invest in U.S. manufacturing capabilities to s
Slide 18: Key Takeaways
Key Takeaways 1 2 3 4 Strong Q4 We believe that US Our US supply chain We believe that our performance, with demand will not be provides us with a strategy of rapid 45% of annual significantly impacted clear competitive innovation can revenue generated, by the change in advantage to deliver provide
Slide 19: Today's Agenda: Q&A
Today’s Agenda 1 2 3 Q&A © Fluence Energy, Inc. All rights reserved. | 19
Slide 20: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 20
Slide 21: Definitions
Definitions Item Definition Backlog represents the unrecognized revenue value of our contractual commitments, which include deferred revenue and amounts that will be billed and recognized as revenue in future periods. The Company’s backlog may vary significantly each reporting period based on the ti
Slide 22: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 FY24 FY24 ($ in millions) Q4'23 FY23 Q1'24 Q2’24 Q3’24 Q4’24 ($ in millions) Q4'23 FY23 Q1’24 Q2’24 Q3’24 Q4’24 YTD YTD GROSS PROFIT 76.3 141.0 36.4 64.2 83.0 157.5 341.1 NET INCOME (LOSS) 4.8 (104.8) 30.4 (25.6) (12.9) 1.1 67.7 Gross Profit Margin % 11
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 12 Months Percentage ~10% ~60% ~20% ~10% of Contract Recognized as Revenue 12 MONTHS 6 MONTHS Final Contract signed & ‘Notice to completion Project Proceed’ Issued by Customer; Fulfill
Slide 25: Upcoming Events Investor Relations Contact
Upcoming Events Investor Relations Contact November 26, 2024 Q4 Earnings Call Lexington May December 13, 2024 Jefferies Battery Conference Vice President, Investor Relations & Sustainability January 7, 2025 Goldman Sachs Energy, Lexington.May@fluenceenergy.com Cleantech & Utilities Conference Miami