Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Investor Presentation (October 2023)
32 slides from Fluence Energy's investor presentation, October 2023
Slide 1: Investor Presentation
Investor Presentation OCTOBER 2023
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: Investment Thesis
SECTION I Investment Thesis © Fluence Energy Inc. All rights reserved. | 3
Slide 4: Fluence Investment Thesis
Fluence Investment Thesis FLNC has a clear first mover advantage as it’s the only player in the market to announce a utility scale energy storage product that qualifies for the IRA domestic content incentives 1. Huge total addressable market. Per BNEF, utility scale storage annual additions expected
Slide 5: Early US Battery Cell Supply Secured
Early US Battery Cell Supply Secured IRA Domestic Content Regulations Signed agreement in July with AESC in which FLNC Provide Some will procure US manufactured battery cells Answers, More Clarity Still Needed; Reaffirm Prior IRA Multi-year deal with initial shipments expected in Q4 Expected Impacts
Slide 6: Gridstack Pro Launched October 2023
Gridstack Pro Launched October 2023 Built for the next era of utility-scale energy storage. 1st utility scale storage product announced that qualifies for IRA domestic content incentives Fluence Battery Pack Optimized Design Next-level Flexibility Total Intelligence The right balance of density, Div
Slide 7: About Us
SECTION II About Us © Fluence Energy Inc. All rights reserved. | 7
Slide 8: Our Mission
OUR MISSION Transform the way we power our world to create a more sustainable future. PURPOSE-BUILT PURPOSE-DRIVEN © Fluence Energy Inc. All rights reserved. | 8
Slide 9: What does our mission mean for the world?
What does our mission mean for the world? IMPACTING CLIMATE CHANGE CAPITAL EFFICIENCY ACCESS TO ELECTRICITY • As of 2022, power generation • The Power Grid is designed to • According to the International accounted for roughly a meet peak demand. Energy Agency, nearly 775 quarter of all global CO2 mi
Slide 10: Best-In-Class Global Energy Storage Solutions Provider
Best-In-Class Global Energy Storage Solutions Provider We provide comprehensive energy storage solutions for our customers most complex challenges PCS. Prequalified to work with Safety. Standard safety components include Batteries. Cubes come pre-assembled leading power conversion systems fire detec
Slide 11: Key Highlights Fluence Contract Manufacturing Locations
Key Highlights Fluence Contract Manufacturing Locations Regionalizing our supply chains Utah facility well positioned following USA – Utah facility passage of IRA operational since Asia – Vietnam facility September 2022 operational since 2020 Potential for an additional USA based facility following
Slide 12: A trusted partner for leading companies globally
A trusted partner for leading companies globally A broad range of customers across multiple segments UTILITIES / IPPs FINANCIALS C&I 12
Slide 13: FLNC the Preferred Supplier of Storage Solutions
SUPPORTING FY’23 OBJECTIVE FLNC the Preferred Supplier of Storage Solutions; Builds Strong Customer Relationships and Drives Long-Term Service Contracts Customers cite safety, performance, bankability, and supply chain assurance in selecting FLNC; deployed services attachment rate >90% Safety Perfor
Slide 14: Fluence Offerings
SECTION III Fluence Offerings © Fluence Energy Inc. All rights reserved. | 14
Slide 15: Configurable storage solutions, service, and digital application packages
We help customers manage the energy transition through configurable storage solutions, service, and digital application packages Fluence Energy Storage Solutions & OS Fluence Long-Term Services Digital Apps for Renewables and Storage Purpose-built energy storage with integrated hardware Comprehensiv
Slide 16: Fluence Ultrastack
SUPPORTING FY’23 OBJECTIVES Fluence UltrastackTM High performance product built for the complex requirements of transmission segment GROWTH IN DISTRIBUTED DRIVES DEMAND FOR STORAGE REQUIRING PROPRIETARY, HIGH- ENERGY RESOURCES AS TRANSMISSION ASSETS1 PERFORMANCE SOLUTIONS 17 GW UltrastackTM Capabili
Slide 17: Fluence's Battery Pack
SUPPORTING FY’23 OBJECTIVE Fluence’s Battery Pack Gives Fluence greater control over the global supply chain and capitalizes on incentives under the Inflation Reduction Act. TODAY Fluence purchases the battery subsystem from OEM suppliers. 2023-2024 OBJECTIVE Fluence will procure cells competitively
Slide 18: Fluence Battery Pack
SUPPORTING FY’23 OBJECTIVE Fluence Battery Pack Enables easier implementation of integrated solutions while commoditizing battery cells Fluence OS BATTERY PACK SYSTEM Fluence OS Fluence Mosaic Battery Cell (280 Ah Standard Size) Fluence Mosaic DCPM The "brain" of the Pack System, the DCPM collects b
Slide 19: FY 2023 Third Quarter Financial Highlights
SECTION IV FY 2023 Third Quarter Financial Highlights © Fluence Energy Inc. All rights reserved. | 19
Slide 20: Q3'23 Performance
Q3’23 Performance Clearing Out Majority Legacy Low Margin Contracts; Heading into Q4’23 with expected ~10% Gross Margins1 Q3’23 Order Intake Q3’23 Revenue Recognized Long-term Services AUM4 at 6/30 $565M $536M 2.3 GW 1.4 GWh Solutions2, 0.15 GWh Services, Deployed ~1.5GWh Energy >90% Cumulative Depl
Slide 21: On Track to Meet Our Commitments; Secured US Battery Supply
PROGRESSING ON STRATEGIC OBJECTIVES On Track to Meet Our Commitments; Secured US Battery Supply Deliver profitable growth • Raising FY’23 guidance range to $2.0 – 2.1 billion for revenue; $117-$132 million for Adjusted Gross Profit1. • Reaffirming our belief that we will be close to Adjusted EBITDA
Slide 22: Strong Demand and Execution Lead to Increased FY'23 Guidance
SUPPORTING FY’23 OBJECTIVE Strong Demand and Execution Lead to Increased FY’23 Guidance >$1B of pipeline growth quarter over quarter. Reaffirm expected 35-40% revenue growth in FY’24 ~$12.4 P I P E L I NE • The pipeline experienced a significant increase of ~$1.2 billion on a quarter-to-quarter basi
Slide 23: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 23
Slide 24: AI-Based Predictive Maintenance For Batteries
NISPERA FOR STORAGE + AI-Based Predictive Maintenance For Batteries AI models detect May help identify Identify, prioritize, and act on storage cell temperatures issues before it performance issues to reduce downtime higher than their escalates into standard behavior taking the asset offline • AI mo
Slide 25: Fluence Publishes Inaugural Sustainability Report
Fluence Publishes Inaugural Sustainability Report • Maintaining accountability through transparency Diversity, Equity and Inclusion FY’23 Target: 33% female hires End of Life Management Developing Fluence’s circular economy framework Conflict Minerals Ensure our actions do not contribute to the arme
Slide 26: Third Quarter 2023 Financial Performance
Third Quarter 2023 Financial Performance Strong Topline Performance and Positive Quarterly Cashflow HIGHLIGHTS All figures in $ million, unless specified3 Q3’22 Q2’23 Q3’23 1. 124% YoY revenue growth in Revenue 239 698 536 Q3’23, select projects ahead of schedule pulling forward Adjusted Gross Profi
Slide 27: Raising FY'23 guidance; Expect to be close to Adjusted EBITDA breakeven in Q4 FY'23
Raising FY’23 guidance; Expect to be close to Adjusted EBITDA breakeven in Q4 FY’23 Reaffirm 35-40% year over year growth; and positive Adj. EBITDA for FY’24 1. Implied Q4’23 Guidance for Revenue at ~$500M and Adj. Gross Profit1 at >$50M All figures in $ million, unless specified • Narrowed FY’23 gu
Slide 28: YTD 2023 Financial Performance
YTD 2023 Financial Performance Strong Year Over Year Improvement All figures in $ million, unless specified3 Q3’22 YTD Q3’23 YTD Revenue 757 1,545 HIGHLIGHTS Adjusted Gross Profit1 (66) 69 1. Significant year over year improvement resulting in 104% increase in revenue Operating expenses excluding st
Slide 29: Q3'23 Ending Cash at $416M, No Recourse Debt
Q3’23 Ending Cash at $416M, No Recourse Debt, In-line with Prior Commitments Expect FY’23 to end with liquidity >$500M; ample liquidity4 for cash needs All figures in $ million, unless specified DESCRIPTION Q3’23A FY’23 Framework Intact Total Cash1 as of 3/31/23 384 Financing - Continue to assume no
Slide 30: Definitions
Definitions ITEM DEFINITION Pipeline Represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog Represent signed purchase orders or c
Slide 31: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 ($ in millions) Q2'22 Q3’22 FY22 Q2’23 Q3'23 YTD Q3’22 YTD Q3’23 GROSS PROFIT (LOSS) (14.8) (5.2) (62.4) 30.8 21.8 (73.1) 64.7 ADD (DEDUCT): STOCK-BASED COMPENSATION 0.7 2.6 8.5 1.3 1.2 6.9 3.4 AMORTIZATION - - - - 0.5 - 0.5 OTHER EXPENSES(c) - - - 0.1
Slide 32: Investor Relations Contact
Investor Relations Contact Lexington May Vice President, Finance & Investor Relations Lexington.May@fluenceenergy.com © Fluence Energy, Inc. All rights reserved. | 32
Fluence Energy — Investor Presentation (October 2023) on 6ix