Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Q3 2024 Earnings Presentation
25 slides from Fluence Energy's earnings presentation, Aug 8, 2024
Slide 1: 3Q FY2024 Earnings Presentation
August 8, 2024 3Q FY2024 Earnings Presentation
Slide 2: Disclaimer: Forward-Looking Statements
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: Q3'24 Performance
Q3’24 Performance Q3’24 Revenue Recognized Q3’24 Adj. Gross Profit/Margin %1 Q3’24 Adjusted EBITDA1 $483M $85M | 17.5% $15.6M ~1.1 GWh Energy GAAP Gross Profit/Margin % $83M | 17.2% Q3’24 GAAP Net Income $1.1M Storage Solutions4 Q3’24 Order Intake Backlog4 at 6/30 Digital AUM at 6/30 $1.3B $4.5B 18.
Slide 5: Now at 12% GAAP Gross Profit Margin on Rolling LTM Basis
Now at 12% GAAP Gross Profit Margin on Rolling LTM Basis, Reflecting Steady Margin Improvement Double Digit Gross Profit Margins for Fourth Consecutive Quarter LTM GAAP Gross Profit % 14.0% 12.1% 12.0% 10.0% 9.0% 8.0% 7.3% 6.4% 6.0% 3.8% 4.0% 2.9% 2.0% 0.2% 0.0% Q4'22 Q4’22 Q1'23 Q2'23 Q3'23 Q4'23 Q
Slide 6: Robust Global Utility Scale Pipeline Underpins Strong Growth Outlook
Robust Global Utility Scale Pipeline Underpins Strong Growth Outlook Pipeline increased by 65% from Q3 FY’23 PIPELINE Pipeline increased 25%, or $4.1B, FLNC Chart in billions USD as of June 30, 2024 quarter-to-quarter 27% $20.4 FLNC $20.4 Billion 45% $16.3 2025 OUTLOOK Utility Scale $12.4 Pipeline R
Slide 7: Strong Backlog Growth Provides Visibility to Future Revenue
Strong Backlog Growth Provides Visibility to Future Revenue Backlog increased by 52% from Q3 FY’23 BACKLOG FLNC Chart in billions USD as of June 30, 2024 $4.5 Backlog increased 22%, or $800M, quarter-to-quarter $3.7 $2.9 STRONG ORDER INTAKE 11 consecutive quarters of order intake outpacing revenue r
Slide 8: Recent US Policy Announcements Support FLNC's Strategy
Recent US Policy Announcements Support FLNC’s Strategy IRA Domestic Content Guidelines Section 301 Tariff Increase IRA Guidelines establish new elective Safe The White House issued a proclamation to Harbor table for Grid Scale BESS Components; increase the Section 301 tariff on batteries Required 40
Slide 9: Fluence Battery Module Production Line
Fluence Battery Module Production Line Expected to start initial production late September 2024; anticipate gradually ramping up production over subsequent quarters © Fluence Energy, Inc. All rights reserved. | 9
Slide 10: Growth of US BESS Market Is Robust and Resilient to US Election Outcome
• BESS demand continues to Growth of US BESS Market Is Robust increase, thereby illustrating the need for grid stability and and Resilient to US Election Outcome resiliency irrespective of political landscape. BNEF US Utility Scale Capacity Additions • We believe our business model is successful und
Slide 11: Increasing Global Demand for BESS to Enhance Geographic Diversity
Increasing Global Demand for BESS to Enhance FLNC’s Geographic Diversity BNEF EMEA Utility Scale Annual Capacity Additions BNEF APAC Utility Scale Annual Capacity Additions 12,000 18,000 16,000 10,000 14,000 ~34% CAGR ~42% CAGR MWh MWh 8,000 12,000 10,000 6,000 8,000 6,000 4,000 4,000 2,000 2,000 -
Slide 12: India Expansion
India Expansion In July 2024, Fluence expanded its Global Innovation Center in India to include a Digital Service Center, which provides Remote Monitoring and Diagnostics. This central hub is anticipated to: • Enable ARR Growth • Provide a platform for horizonal integration by co- locating our globa
Slide 13: Today's Agenda: Financial Update
Today’s Agenda 1 2 Financial Update Ahmed Pasha, SVP & CFO 3 © Fluence Energy, Inc. All rights reserved. | 13
Slide 14: Third Quarter 2024 Financial Performance
Third Quarter 2024 Financial Performance HIGHLIGHTS Continued improvement in Gross Profit Margins 1 Generated $483M revenue, about 20% higher than expectations due to All figures in $ million, unless specified2 Q3’23 Q3’24 YTD completing project Revenue 536 483 1,470 milestones ahead of schedule. Ad
Slide 15: Bolstering Liquidity to Support Industry-Leading Growth
Bolstering Liquidity1 to Support Industry- Leading Growth All figures in $ million, unless specified HIGHLIGHTS • As of June 30, 2024: $400M ABL $1,072 remained undrawn; borrowing $474 availability depended on level of U.S. collateral inventory and any borrowing base qualified $598 cash. $589 $513 $
Slide 16: FY'24 Revenue Update
FY’24 Revenue Update We now expect FY 2024 Revenue of $2.7–2.8 billion vs $2.7–3.3 billion previously Reduction from prior $3B guidance We are confident in our ability to midpoint to $2.75B guidance midpoint deliver our Q4 revenue consistent due to: with our revised guidance due to: 1 Two specific 2
Slide 17: Updated FY'24 Guidance; Reaffirm 2025 Outlook
Updated FY’24 Guidance; Reaffirm 2025 Outlook HIGHLIGHTS 1 FY’24 revenue guidance narrowed due to timing of projects; most of revenue All figures in $ million, Prior FY 2024 Updated FY 2024 shortfall shifted to FY’25. FY 2023 unless specified Guidance Guidance 2 100% of midpoint of FY’24 revenue gui
Slide 18: Key Takeaways
Key Takeaways 1 2 3 4 Year-to-date Started seeing the Ample liquidity to Well positioned to performance benefits of our US support our growth capitalize on strong demonstrates our domestic content plans. Significantly growth outlook for ability to deliver strategy. upsized credit global energy stora
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: FLNC is the Preferred Choice for Utility Scale BESS Integration
FLNC is the Preferred Choice for Utility Scale BESS Integration Digital Global BESS capacity by top 10 integrators (MW) Services software Installed Contracted 8000 7000 Power electronic Safety & engineering and 6000 Cybersecurity innovation 5000 4000 3000 2000 Bankability Scale and supply 1000 chain
Slide 22: 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 23: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 FY24 FY24 ($ in millions) Q3'23 Q4'23 FY23 Q1'24 Q2’24 Q3’24 ($ in millions) Q3'23 Q4'23 FY23 Q1’24 Q2’24 Q3’24 YTD YTD GROSS PROFIT 21.8 76.3 141.0 36.4 64.2 83.0 183.6 NET INCOME (LOSS) 4.8 (104.8) (37.4) (35.0) (25.6) (12.9) 1.1 Gross Profit Margin %
Slide 24: 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 25: Upcoming Events and Investor Relations Contact
Upcoming Events Investor Relations Contact August 9, 2024 Q3 Earnings Call Lexington May August 13, 2024 Canaccord Genuity Vice President, Conference Boston Finance & Investor Relations October 1, 2024 Wolfe Conference NYC Lexington.May@fluenceenergy.com November 2024 Q4 Earnings Call © Fluence Ener