Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Q3 FY2022 Earnings Presentation
21 slides from Fluence Energy's earnings presentation, Aug 16, 2022
Slide 1: 3Q FY2022 Earnings Presentation
3Q FY2022 Earnings Presentation AUGUST 16, 2022
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: FY2022 Q3 Quarterly Highlights
FY2022 Q3 Quarterly Highlights Manuel Perez Dubuc CHIEF EXECUTIVE OFFICER © Fluence Energy, Inc. All rights reserved. | 3
Slide 4: Third Quarter FY22 Highlights
Third Quarter FY22 Highlights Progress on Gross Margin improvement quarter over quarter. Continued focus on profitable growth. PRODUCT REVENUE ORDER INTAKE Generated positive cash flow for the second consecutive quarter increasing our liquidity as we $239M 311 MW focus on improving our margin profil
Slide 5: Passage of Inflation Reduction Act Expected to Drive 20%+ Incremental Growth in US Energy Storage
Passage of Inflation Reduction Act Expected to Drive 20%+ Incremental Growth in US Energy Storage PROJECTED US ENERGY STORAGE CAPACITY INSTALLATIONS 2024- 2030 Accelerates energy storage capacity Installed GW by more than 14 GW by 2030 +20% Creates increase in overall US demand for energy storag
Slide 6: Update on Improvement Actions
Update on Improvement Actions PROGRESS ON IMPROVEMENT ACTIONS TRENDS VS Q2 Trending vs PQ Shipping TRENDING vs PQ OVERALL STATUS SUPPLY CHAIN • Shipping rates flattening • Seeing benefits of expanding to DISRUPTIONS multiple shipping partners • Port of Shanghai seeing delays through increased option
Slide 7: FY2022 Q3 Financial Update
FY2022 Q3 Financial Update Dennis Fehr SVP & CHIEF FINANCIAL OFFICER © Fluence Energy, Inc. All rights reserved. | 7
Slide 8: Key Financial Takeaways
Solid $239 million revenue as expected given the Q2 and Q3 lockdowns Key Financial 1 in China. Takeaways 2 Solid Gross Profit development in line with expectations: • Improved GAAP Gross Profit margin from (4%) in Q2/FY22 to (2%) in Q3/FY22 and turning to positive Adj. Gross Profit. • Executing plan
Slide 9: Key Performance Indicators
New Orders Key Performance (AMOUNTS IN MW) THREE MONTHS ENDED JUNE 30, Indicators 2022 2021 CHANGE CHANGE % ENERGY STORAGE PRODUCTS Q3/FY22 CONTRACTED 311 338 (27) (8.0)% ENERGY STORAGE SERVICES • First nine months of fiscal year CONTRACTED 81 870 (789) (90.7) % 2022 energy storage product DIGITAL C
Slide 10: Total Revenue
Total Revenue Q3/FY22 Year-over-Year Sequential Quarter Q3 v Q3 Total Revenue Q2 v Q3 Total Revenue ($ in millions) • Revenue decreased 14% year ($ in millions) over year -14% -30% $278 $343 – Decrease expected due to COVID-19 driven lock downs $239 in China delaying shipments of batteries and proje
Slide 11: Gross Profit & Adjusted Gross Profit
Gross Profit & Year-over-Year Q3 v Q3 Gross Profit (Loss) Sequential Quarter Q2 v Q3 Gross Profit (Loss) (2) Adjusted Gross Profit ($ in millions) ($ in millions) Q3/FY22 • Gross Profit improved quarter over ($15) ($5) ($5) ($15) quarter mostly attributable to -67% reduction of adverse margin impact
Slide 12: Reducing adverse margin impacts in FY22; Increasing margin through pricing & other levers
PRODUCTS GROSS PROFIT Reducing adverse margin impacts in FY22; Increasing margin through pricing & other levers in FY23/24; Upside from Inflation Reduction Act in FY24+ LEVER #1: REDUCE FY22 ADVERSE LEVER #2: INCREASE AS-SOLD MARGIN MARGIN IMPACTS FOR FY23 and FY24 REVENUE Adverse impacts on GAAP Ma
Slide 13: Adjusted EBITDA
Adjusted EBITDA Q3/FY22 Year-over-Year Sequential Quarter Q3 v Q3 Adjusted EBITDA(1) Q2 v Q3 Adjusted EBITDA(1) • Q3/FY22 Net Loss of $(61) million ($ in millions) ($ in millions) vs Q3/FY21 Net Loss $(39) million • Other expense adjustments mainly included in Q3/FY22 Adjusted EBITDA: • +$3.9 millio
Slide 14: Cash and Cash Equivalents
Cash and Cash Equivalents Cash and Cash Equivalents (1) ($ in millions) Q3/FY22 +$39 Cash and cash equivalents • Total cash increased approximately $39 million from the end of Q2/FY22 due to better collections from our customers as well as prepayments for projects. • Cash balance is post ~$30 millio
Slide 15: Total Revenue Guidance
Total Revenue Guidance Reaffirming guidance for FY2022 revenues of approximately $1.1 billion. We expect Q4/FY22 total revenue of approximately $345 million. Our guidance is based on a contracted backlog of $2.1 billion as of June 30, 2022. CONTRACTED BACKLOG IN MW AS OF 6/30/2022: 3,564 MW 1,853 MW
Slide 16: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 16
Slide 17: Definitions
Definitions Pipeline -Represents our uncontracted, potential revenue from energy storage products, service, and digital software contracts currently in process, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog - Represent signed purchase orders or contrac
Slide 18: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED JUNE 30, 2022 2021 CHANGE CHANGE % NET LOSS $ (60,829) $ (38,776) $ (22,053) (56.9) % ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET (226) 424 (650) 153.3 1,680 INCOME TAX EXPENSE (BENEFIT) (979) (2,659) (158.3
Slide 19: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED JUNE 30, 2022 2021 CHANGE CHANGE % TOTAL REVENUE $239,010 $278,195 $(39,185) (14.1) % COST OF GOODS AND SERVICES 244,207 293,150 (48,943) (16.7) GROSS PROFIT (LOSS) (5,197) (14,955) 9,758 (65.2) ADD (DEDUCT):
Slide 20: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED JUNE 30, 2022 2021 CHANGE CHANGE % NET LOSS $ (60,829) $ (38,776) $ (22,053) (56.9)% ADD (DEDUCT): AMORTIZATION OF INTANGIBLE ASSETS 1,334 888 446 50.2 — STOCK-BASED COMPENSATION (a) 7,397 7,397 n/a OTHER EXP
Slide 21: Upcoming Events Investor Relations Contact
Upcoming Events Investor Relations Contact August 16, 2022 Q3 Earnings Call Lexington May Director of Investor Relations Lexington.may@fluenceenergy.com Sept 6-8, 2022 Barclays CEO Energy – Power Conference Sept 28-29, 2022 Wolfe Conference Nov 7-8, 2022 JP Morgan Global Energy Conference London Dec