Fuelcell Energy, Inc. · NASDAQ:FCEL
Fuelcell Energy — Q4 2019 Earnings Presentation
28 slides from Fuelcell Energy's earnings presentation, Jan 22, 2020
Slide 1: Fourth Quarter and Fiscal 2019 Financial Results & Strategy Update
Fourth Quarter and Fiscal 2019 Financial Results & Strategy Update January 22, 2020 FUELCELL ENERGY INVESTOR PRESENTATION
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements with respect to the Company’s anticipated financial results and statements r
Slide 3: Purpose Statement
Purpose Statement Enable the world to live a life empowered by clean energy FUELCELL ENERGY INVESTOR PRESENTATION 3
Slide 4: The Global Leader in Fuel Cell Technology since 1969
The Global Leader in Fuel Cell Technology since 1969 COMPANY HIGHLIGHTS1 REVENUE DRIVERS Danbury, CT Headquarters SERVICE & LICENSE ADVANCED TECHNOLOGIES GENERATION PRODUCT 300+ Employees 3 Continents 57 Global plant installations >255 MW Capacity in Field FY 2019 Revenue $60.8M Total FY 2019 Revenu
Slide 5: 4Q and Fiscal 2019 Financial Performance
4Q and Fiscal 2019 Financial Performance FUELCELL ENERGY INVESTOR PRESENTATION
Slide 6: 4Q and Fiscal 2019 Highlights
4Q and Fiscal 2019 Highlights Many strategic actions taken throughout 2019 position FuelCell Energy for long-term success Secured funding to provide immediate liquidity to execute inflight projects that will generate recurring cash flow upon completion Concluded engagement with Huron to assist
Slide 7: 4Q and Fiscal 2019 Financial Performance
4Q and Fiscal 2019 Financial Performance Highlights vs prior-year periods Total Revenues ($M) Adjusted EBITDA1 ($M) Loss per Share 4Q revenue declined 38% to $11.0M, $89.4 4Q18 4Q19 2018 2019 4Q18 4Q19 2018 2019 primarily reflecting decreased Product sales and Service and $(0.23) License revenues
Slide 8: Restructured, Laddered Debt Maturity Schedule
Restructured, Laddered Debt Maturity Schedule $55.3 Highlights as of 10/31/19 Debt Maturities as of 4/30/19 ($M) Restructured debt maturity schedule; loan facility from Orion Energy Partners $14.1 Recurring revenue from completed $4.4 $4.8 $4.6 $4.7 generation projects to fund term loan repaymen
Slide 9: Introducing the Transformational Strategy
Introducing the Transformational Strategy FUELCELL ENERGY INVESTOR PRESENTATION
Slide 10: Series of Steps Taken to Right-size and Strengthen Organization
Series of Steps Taken to Right-size and Strengthen Organization 2019 KEY ACCOMPLISHMENTS THROUGHOUT THE YEAR June August October November December Tony Leo Jason Few Entered strategic Signed $200M corporate Achieved significant appointed CTO appointed CEO agreement with loan facility with an 8-year
Slide 11: Jason Few Assumed Role of CEO in Aug. 2019
Jason Few Assumed Role of CEO in Aug. 2019; Served as a Director Since Nov. 2018 OBSERVATIONS OPPORTUNITIES Strong manufacturing and engineering expertise; Leverage unrivaled technology for ultra-clean over 250 MW of power plants operating 24/7 baseload power Extensive Intellectual Property (I
Slide 12: Seasoned Leadership Team with Deep Industry Expertise
Seasoned Leadership Team with Deep Industry Expertise Jason Few Jennifer Michael Bishop Michael Lisowski Anthony Leo President and Arasimowicz EVP, Chief Financial EVP, Chief Operating EVP, Chief Technology Chief Executive Officer EVP, General Counsel Officer and Treasurer Officer Officer Joined: 20
Slide 13: Long-term Macro Trends Supporting Clean Energy
Long-term Macro Trends Supporting Clean Energy Sustainable Grid Resiliency Carbon Regulatory Clean Energy and Reliability Reduction Support Renewable energy exceeded Intermittency of power Paris Climate Agreement: State and local governments coal for the first time by resources, natural disasters, g
Slide 14: FuelCell Energy Market Opportunity – Generation, Equipment Sales & Service
FuelCell Energy Market Opportunity – Generation, Equipment Sales & Service 1 GW Baseload is the largest segment of 2 GW Distributed Power Distributed Hydrogen the U.S. electricity market $7B $11B $4B $5B U.S. Electricity Generation Equipment Services Equipment Services Market Market Market Market 4,
Slide 15: Unrivaled Technology to Meet Future Energy Requirements
Unrivaled Technology to Meet Future Energy Requirements COMBUSTION SOLAR SureSourceTM FUEL CELLS ELECTRICAL BASED AND WIND GRID NATURAL GAS BIOGAS TECHNOLOGY BENEFITS EQUIPMENT TECHNOLOGIES Low CO2 emissions Low criteria emissions 24x7 Energy output 24x7 Avoided emissions Compact footprint Easy to s
Slide 16: The Evolving Energy Grid
The Evolving Energy Grid FUEL CELL TECHNOLOGY A GROWING SOURCE OF CLEAN, RELIABLE POWER FOR MICROGRID SOLUTIONS, CARBON CAPTURE AND ENERGY STORAGE Cities and Offices Nuclear Power Plant Microgrid Combined Heat / Power Cooling and Power Long-Duration Storage of Energy Solar Power Smart Houses Thermal
Slide 17: Translating R&D Efforts to Production of Advanced Fuel Cell Stacks
Translating R&D Efforts to Production of Advanced Fuel Cell Stacks Launched 7-Year Extended-Life Stack Modules Expected Service Life of Carbonate Fuel Stack1 (in years) Leading the industry in stack life among high 10 temperature fuel cell suppliers 9 Shifted production from 5-year to 7-year lif
Slide 18: Announcing Transformation Strategy: Powerhouse
Announcing Transformation Strategy: Powerhouse Capture Strengthen growth by Build a solid the business leveraging financial and maximize core foundation operational strengths efficiencies and partnerships TRANSFORM – 2019 STRENGTHEN – 2020 GROW – 2021+ On a Three-year Execution Path to Transform The
Slide 19: Powerhouse Phase I: Transform
Powerhouse Phase I: Transform Phase I: Transform Restructured our management: Appointed Jason Few as CEO, Michael Lisowski to COO and Anthony Leo to CTO Secured funding: $200M senior secured credit facility with Orion Energy Partners to support execution of current projects and provide balance s
Slide 20: Powerhouse Phase II: Strengthen
Powerhouse Phase II: Strengthen Phase II: Strengthen Capital deployment: Continue to focus on disciplined capital deployment and obtaining lower-cost, long-term financing for completed generation projects Commercial excellence: Strengthen customer relationships and build a customer-centric reput
Slide 21: Powerhouse Phase III: Grow
Powerhouse Phase III: Grow Phase III: Grow Sales growth: Increase product sales with key strategic customers; grow service revenue through pricing strategy, improving cost of ownership for customers, and enhancing service solutions Innovation: Further increase product life and reliability; and e
Slide 22: Orion Energy Partners Funding in Place to Support Execution of Backlog
Orion Energy Partners Funding in Place to Support Execution of Backlog □ Future Projects (MW ) MW Recurring Revenue Expected to Grow by 3X 120 With Execution of Project Backlog Estimated Project Completions Recurring Revenue 100 with Increase in 2020 2021 2022 Backlog ($) Groton, CT Derby, CT Toyota
Slide 23: Long-Term Targets and Goals
Long-Term Targets and Goals FY 2022 Targets Future Goals Grow Generation Portfolio 100% Achieve grid parity Positive EBITDA Revenue Growth Double-digit CAGR Positive free cash flow Deliver return on Deliver Positive Adjusted EBITDA Adjusted EBITDA invested capital Execution on project back
Slide 24: Key Investment Highlights
Key Investment Highlights Strengthened New leadership Unrivaled On a three-year path of 1 balance sheet with 2 committed to 3 technology for ultra- 4 execution to Transform, funding secured to project execution, clean, reliable and Strengthen and Grow deliver long-term achieving financial scalable b
Slide 25: Q&A
Q&A FUELCELL ENERGY INVESTOR PRESENTATION
Slide 26: Appendix
Appendix FUELCELL ENERGY INVESTOR PRESENTATION
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three Months Ended October 31, Year Ended October 31, (Amounts in thousands) 2019 2018 2019 2018 Net loss $ (35,179) $ (14,096) $ (77,568) $ (47,334) Depreciation 4,034 2,123 12,353 8,648 Provision/(Benefit) for income taxes 20 5 109 (3,015) Other income, net(1) (649)
Slide 28: 2019 Accomplishments and Highlights
2019 Accomplishments and Highlights FuelCell Energy Announces New Carbon Capture FuelCell Energy & E.ON Business Solutions Announce ExxonMobil, FuelCell Energy Expand Agreement for Project with Drax Power Station an Agreement to Develop the European Market Carbon Capture Technology June. 27, 2019 Oc