Bloom Energy Corporation · NYSE:BE
Bloom Energy — Investor Presentation (February 2021)
16 slides from Bloom Energy's investor presentation, Feb 22, 2021
Slide 1: Service Business Teach-In
SERVICE BUSINESS TEACH-IN Greg Cameron Executive Vice President, Chief Financial Officer Glen Griffiths Executive Vice President, Services, Quality, Reliability and EH&S Proprietary and Confidential 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include all statements other than statements of historical fact, i
Slide 3: Bloom Energy's Service Business at a Glance
BLOOM ENERGY’S SERVICE BUSINESS AT A GLANCE $3.4B ~$150M ~40% 20% Service Backlog1 2021 Service 2021 YoY Revenue New Service Contract Revenue Estimate Growth Estimate Gross Margin Target 100% >650 15 Years >5 Years Service Contract Unique Sites Globally with Average Remaining Useful Life of Latest B
Slide 4: Service Offering Overview
SERVICE OFFERING OVERVIEW • 24/7 remote monitoring Remote • Fleet performance optimization Monitoring and Diagnostics (power, efficiency, reliability) ~10% • Analytics and field service of Service Cost dispatch Installed Base Unit Fixed • Preventive maintenance (filters Cost Parts and Labor (Level 1
Slide 5: Value Proposition
VALUE PROPOSITION Value to Bloom Customers Value to Bloom Always-on Power / Availability Annuity-Based Income Performance Certainty Ability to Expand Margins through (Availability, Power and Efficiency) Cost-Out, Upgrade and Refurbishment Pipeline Incentives Aligned Contractual Availability Commitme
Slide 6: Key Drivers of Our Service Performance
KEY DRIVERS OF OUR SERVICE PERFORMANCE • Power module installed life 1 Power Module Life • Beginning of life efficiency and rate of degradation • More power per unit = fewer units Service Cost • Power module replacement cost 2 Unit Cost • Replacement with a new or refurbished system Expected to be P
Slide 7: Power Module Life
1 POWER MODULE LIFE Two Drivers of Increasing Life: •1 Beginning of life efficiency •2 Slope of degradation curve Efficiency Bloom 1.0 Bloom 2.0 Bloom 5.0 Bloom 7.5 Released in 2008 Released in 2011 Released in 2015 In Deployment 0 2 3 5 6 Life in Years Proprietary and Confidential 7
Slide 8: Power Module Life Drives Margin Expansion
1 POWER MODULE LIFE DRIVES MARGIN EXPANSION Lifetime Service Gross Margin Assuming 15-Year Contract Initial Power Module Bloom 1.0 Bloom 2.0-2.5 Bloom 5.0 Generation 2008-11 2011-16 2015-22 20% Service 0% Gross Margin (20%) % of Fleet MW <1% 24% 75% Decreasing Decreasing Increasing Proprietary and C
Slide 9: Replacement Cost
2 REPLACEMENT COST Power Module Cost ($ / kW) Parts & Labor Cost ($ / kW) Lower Cost per Lower Parts and Power Module Labor Cost (40%) (71%) ~(30%) ~(25%) 2015 2020 2025 2015 2020 2025 Proprietary and Confidential 9
Slide 10: Bloom Power Module Improvements by Generation
BLOOM POWER MODULE IMPROVEMENTS BY GENERATION Generation Bloom 1.0 Bloom 2.0 Bloom 2.5 Bloom 5.0 Bloom 7.5 Deployment 2008-11 2011-13 2013-16 2015-22 2021+ Module Power 25 kW 33 kW 42 kW 50 kW 75 kW Footprint Increased Power Module Output % of Fleet MW <1% 4% 20% 75% 0% Portfolio Generation Mix Impr
Slide 11: How It Works in Practice: Illustrative Product Lifecycle
HOW IT WORKS IN PRACTICE: ILLUSTRATIVE PRODUCT LIFECYCLE Bloom 1.0 Bloom 2.0 Bloom 2.5 Bloom 5.0 Power Module Life 2 3 5 >5 (Years) Unit Cost1 100 66 57 - 35 39 - 14 Refurbished Power Module Replacement + Power Upgrade to Module Bloom 5.0 Replacement Performance Power + Upgrade to Module Replacement
Slide 12: How It Works in Practice: Illustrative Historical View
HOW IT WORKS IN PRACTICE: ILLUSTRATIVE HISTORICAL VIEW Power Module Replacement + Upgrade to Bloom 2.0 Dollars Power Module Replacement + Upgrade to Bloom 2.5 Refurbished Power Module Replacement + Upgrade to Annual Bloom 5.0 Performance Revenue Annual Cost Approx. Year 2009 2010 2011 2012 2013 2014
Slide 13: How It Works in Practice: Illustrative Current Contract
HOW IT WORKS IN PRACTICE: ILLUSTRATIVE CURRENT CONTRACT 1 Service Contract Cumulative Economics ($M) Consistently profitable services contract Cumulative Revenue Cumulative Cost 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 First Power Module Second Power Module Replacements Replacements Proprietary and Confi
Slide 14: Combined P&L Impact of Contracts
COMBINED P&L IMPACT OF CONTRACTS Combined Economics of Services Contracts ($M) Revenue 20% Target Gross Margin Cost by 2025 Breakeven in Q1’21 2015-2017 2018-2020 2021 2023 2025 (Average) (Average) Proprietary and Confidential 14
Slide 15: Key Takeaways
KEY TAKEAWAYS Service Represents Attractive Recurring Revenue Stream with 100% Product Attach Rate Yearly Profitability Expected in 2021 Scalability and Cost-out to Drive to 20% Target Service Gross Margin by 2025 Proprietary and Confidential 15
Slide 16: Thank You – Q&A
THANK YOU – Q&A F E BRUARY 2 0 2 1 Proprietary and Confidential 16