Bloom Energy Corporation · NYSE:BE

Bloom Energy — Investor Day (December 2020)

39 slides from Bloom Energy's investor day presentation, Dec 16, 2020

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 4: 2020 Year-to-Date Financial Performance
2020 YEAR-TO-DATE FINANCIAL PERFORMANCE 3Q YTD YoY Issued $230 Million Green Bond; Eliminated High Cost / Short Term Debt Acceptances 876 +8% Record Number of Acceptances; Revenue $545 (5%) Ramping Volume in the Second Half Non GAAP Gross Margin %* 21.3% +2pts Cost Reductions Driving Improved Profit
Slide 5: Our Business Is Increasingly Resilient
OUR BUSINESS IS INCREASINGLY RESILIENT We Have Diversified Our We Are Landing We Are Expanding US Customer Base Larger US Sites Internationally (% of Total Acceptances) (% of Total Sites) (% of Product and Install Revenue) Top 3 37% Customers 53% 61% Sites < 1MW 67% US 87% 86% Remaining 63% Customer
Slide 6: Preliminary FY2021 Financial Metrics Outlook
PRELIMINARY FY2021 FINANCIAL METRICS OUTLOOK YoY • High project visibility Metric Change with backlog and pipeline Revenue $950mm to $1bn +25% • Manufacturing capacity in place to meet demand Non GAAP Gross Margin %* ~25% +3pp • International and product Non GAAP Operating expansion opportunities ~3
Slide 7: Drivers of Long-Term Success
DRIVERS OF LONG-TERM SUCCESS 1 Lower Product Cost 2 Simplify Business Model 3 Leverage Platform in New Applications 4 Valuable and Reliable Growth Company © 2020 Bloom Energy Corporation. All rights reserved. 7
Slide 8: Driving the Cost Curve: ~60% Reduction in Cost Since 2015
1 DRIVING THE COST CURVE: ~60% REDUCTION IN COST SINCE 2015 Total Product Cost Cost ($/kW) 14¢ 12¢ 9¢ / kWh / kWh / kWh $5,886 $4,128 10-15% Annual $3,402 $3,159 Cost Reduction $2,715 $2,420 2015 2016 2017 2018 2019 Q3 2020 2021 2022 2023 2024 2025 Note: Product Cost numbers are as of respective per
Slide 9: Simplifying Our Business Model
2 SIMPLIFYING OUR BUSINESS MODEL Leverage Strategic Partnership Drive Operational Advancement • Market access / local expertise • Installation process • Technology co-development • Go to market process • Installation / service • Service model profitability • Financing • Manufacturing technology & sc
Slide 10: Targeting 30% Non-GAAP Gross Margins
2a TARGETING 30% NON-GAAP GROSS MARGINS* Product Investments in Advanced Manufacturing 30% Maintain 40% ~22% Services Fleet Optimization / Replacement Costs / Predictive Analytics Profitable by 2022  20% Long-Term Margin (3%) Installations Streamline Process (Partnerships and Skid Delivery) 2017A 2
Slide 11: Targeting 15% Non-GAAP Operating Margins
2b TARGETING 15% NON-GAAP OPERATING MARGINS* 15% R&D Platform Technology Requires Little Incremental Investment Anticipate 8% of Revenue by 2025 ~(2%) SG&A Ramping Sales Push Offset by Prudent Spending Best-Practice Operational Improvements (34%) Anticipate 7% of Revenue by 2025 2017A 2020E 2025E Op
Slide 12: Near-Term Initiatives Across New and Existing Markets
3 NEAR-TERM INITIATIVES ACROSS NEW AND EXISTING MARKETS • Deliver 100kW of hydrogen-powered fuel cells this month +$300bn Hydrogen • Won 1.8MW RFP in South Korea, delivery beginning 2021 • Expect to deliver SOECs to power hydrogen SOFC in S. Korea in 2022 +$700bn • Anticipated demonstration of CCUS
Slide 13: Valuable and Reliable Growth Company
4 VALUABLE AND RELIABLE GROWTH COMPANY Growth Algorithm Strong Growth in Base Fuel Base Cell by Expanding Map 25% - 30% CAGR Enabling Marine, Biogas, Carbon Technologies Capture Accelerate Growth ~$780mm Significant Market Developing Hydrogen for Fuel Cells and Electrolyzers 2020E 2025E © 2020 Bloom
Slide 14: Long Term Growth Model
LONG TERM GROWTH MODEL Revenue Growth (through 2025) 25%CAGR - 30% Base Revenue Growth Augmented by Hydrogen and Enabling Technologies Non-GAAP Gross Margin* (by 2025) 30% Defend Product Profitability + Increase Contribution of Services and Installation Non-GAAP Operating Margin* (by 2025) 15% Platf
Slide 15: Key Milestones for 2021: Operationalizing Our Growth Strategy
KEY MILESTONES FOR 2021: OPERATIONALIZING OUR GROWTH STRATEGY Operationalize Manufacturing of Bloom 7.5 Establish a New International Partnership Deliver a Hydrogen Fuel Cell and an Electrolyzer Invest in Growth: Technology, Marketing and Sales Continue Cost Reductions: Down Another 10%-15% Build Ad
Slide 16: A Valuable Company
A VALUABLE COMPANY Platform High Cash Technology Growth Generative Bloom Energy is Poised for the Next Chapter in the Future of Energy © 2020 Bloom Energy Corporation. All rights reserved. 16
Slide 18: Massive Energy Transition Is Underway
MASSIVE ENERGY TRANSITION IS UNDERWAY $69 trillion “Climate change is the of infrastructure The biggest transformation since defining issue of our investment time, and we are at a required through Edison’s defining moment” 2030(1) light bulb -- United Nations © 2020 Bloom Energy Corporation. All rig
Slide 20: Macro Forces
MACRO FORCES Climate Climate creating concerns driving resiliency need decarbonization Climate Events Increasing Domestic and International in Intensity and Frequency Climate Goals AlwaysON Zero / Negative Power Carbon Over Time © 2020 Bloom Energy Corporation. All rights reserved. 20
Slide 21: Broad Set of Applications Across the Energy Landscape
BROAD SET OF APPLICATIONS ACROSS THE ENERGY LANDSCAPE Energy Stationary Transportation Fossil Fuels Nuclear Renewables Air Land Sea Bloom Bloom Natural Electrolyzes Waste to Electrolyzes Electric Marine with Heat Renewables Hydrogen Gas Biogas Vehicles Transport Integration to Hydrogen Bloom Bloom N
Slide 22: Expanding the Base Business TAM
EXPANDING THE BASE BUSINESS TAM(2) $1.6 TRILLION Value Creation Levers Cost Reduction Focus on Resiliency Provide a Pathway to Expands Opportunity to Create Additional Value De-Carbonization © 2020 Bloom Energy Corporation. All rights reserved. 22 Notes: see Footnotes slide in the Appendix for citat
Slide 23: Increased Scale Drives Lower Costs, Which Opens New Markets
INCREASED SCALE DRIVES LOWER COSTS, WHICH OPENS NEW MARKETS Offered COE by Year With Resulting Number of Competitive States5 $9.10 48 49 50 $200+ Billion 42 Key enabler: $8.22 US C&I TAM 28% $7.83 28 $7.43 By 2025(6) $7.11 Learning Rate 4x Increase in TAM 2021 2022 2023 2024 2025 vs. today(7) COE St
Slide 24: Scaling Our US Business – Resiliency Increasingly Critical
SCALING OUR US BUSINESS – RESILIENCY INCREASINGLY CRITICAL US Hazard Map(8) Natural Disasters Drastically Disrupting the Energy Grid 2020: 1.9 million lost power in August due to severe storm Resiliency Drives additional value(9) $15-$30 per MWh Premium vs. Standard Grid Costs 2019: 3 million Califo
Slide 25: Upgrade Cycle: Simple Module Enables Decarbonization
UPGRADE CYCLE: SIMPLE MODULE ENABLES DECARBONIZATION Fuel Flexible Today Fuel Migration Tomorrow 100% H2 Biogas Hydrogen Carbon Capture 50% H2 Natural Gas Hydrogen Simple Field Upgrade © 2020 Bloom Energy Corporation. All rights reserved. 25
Slide 26: South Korea – A Leader in Decarbonization
SOUTH KOREA – A LEADER IN DECARBONIZATION Significant Market Opportunity Keystone Partner (10) (11) • Product advocates 600MW 400MW • • Operations support Installation team Korea National (MOTIE) Annual Korea Bookings Target Fuel Cell Target Once Hydrogen Deployment by 2022 Fully Ramped Our go-to ma
Slide 27: Activating Our Strategy Through Sales and Marketing
ACTIVATING OUR STRATEGY THROUGH SALES AND MARKETING Sales Partners Brand Leadership Specialized sales team and Increasing pipeline and Building CXO-Level focus on larger deals accelerating the sales cycle Awareness Augmented Sales and Marketing Approach Enables Sophisticated Go-To-Market Motion © 20
Slide 28: Simple Add On Module Enables Carbon Capture
SIMPLE ADD ON MODULE ENABLES CARBON CAPTURE + Hardware already in operation Carbon Capture Zero or Negative Produces ~99% pure CO2 (Sequestered or Utilized) Carbon Power Carbon Capture Module Enables Zero or Negative CO2 Power © 2020 Bloom Energy Corporation. All rights reserved. 28
Slide 29: Biogas Market Momentum Is Building
BIOGAS MARKET MOMENTUM IS BUILDING 1st Project Under Construction Enabling a Large Market $45 Billion US Biogas Market TAM(12) “We’re excited about our partnership with Bloom Energy. We see significant opportunity utilizing Bloom’s ultra clean and efficient 10x technology to convert our dairy biogas
Slide 31: Bloom's Hydrogen Platform
BLOOM’S HYDROGEN PLATFORM Unique Platform Superior Cost Ready for Growth and Advantages and Performance – 2025 Vision Efficiency Scale & experience 31% 1GW Greater Efficiency Potential vs. Capacity Potential(15) 1 Other Technologies(14) 2 3 $ 4 Faster cost downs Unique Flexibility <$600/kW $750MM Co
Slide 32: Marine Market Opportunity
MARINE MARKET OPPORTUNITY IMO Sets Joint Agreement with SHI Opportunity Emission Targets(16) Announced June 2020 Ahead(17) 40% by 2030 300MW+ -- Initial IMO GHG strategy “Bloom Energy and SHI estimate that “Our goal is to replace all existing main Bloom’s highly efficient SOFC already replacing oil-
Slide 33: International Expansion Beyond South Korea
INTERNATIONAL EXPANSION BEYOND SOUTH KOREA Azeez Mohammed + 1.4 $ Mission With the international business development team under Azeez’s leadership, we are actively adding new geographies where we can replicate our successes in US TRILLION and Korea EVP TAM Opportunity from International Business In
Slide 34: Anticipated Roadmap
ANTICIPATED ROADMAP 2021 2022 2023 2024 2025 US C&I (Target Selling States) 28 42 48 49 50 International Announce new SK type First deployments Ramp partner in Europe Hydrogen Demonstration projects First commercial projects Ramp 1GW CCUS Manufacture demo Demonstration projects First commercial proj
Slide 36: Appendix: GAAP to Non-GAAP Reconciliation Gross Margin and Operating Income
APPENDIX: GAAP TO NON-GAAP RECONCILIATION GROSS MARGIN AND OPERATING INCOME In $ millions 3QYTD’20 3QYTD’19 Revenue $545 $572 Gross Profit $102 $73 Stock-based compensation – COGS $14 $37 Non-GAAP Gross Profit $116 $110 Non-GAAP Gross Margin % 21.3% 19.2% OPEX ($178) ($258) Stock-based compensation
Slide 37: Appendix: GAAP to Non-GAAP Reconciliation Adjusted EPS
APPENDIX: GAAP TO NON-GAAP RECONCILIATION ADJUSTED EPS In $ millions 3QYTD’20 3QYTD’19 Net loss to Common Stockholders ($130) ($239) Loss for non-controlling interests ($17) ($14) Gain (loss) on extinguishment of debt $13 $0 Gain (loss) on warrant & derivatives liabilities ($2) $2 Fair Value Adjustm
Slide 38: Appendix: GAAP to Non-GAAP Reconciliation FY'17
APPENDIX: GAAP TO NON-GAAP RECONCILIATION FY’17 FY’17 FY’17 FY’17 In $ millions GAAP SBC* Non-GAAP Revenue $366 $366 COGS $382 ($6) $376 Gross Profit ($16) $6 ($10) Gross Margin % -4% -3% OPEX $139 ($23) $116 Operating Income ($155) $29 ($126) Operating Income Margin % -42% -34% © 2020 Bloom Energy
Slide 39: Appendix: Footnotes
APPENDIX: FOOTNOTES 1. Source: UN Financing Climate Futures – Rethinking Infrastructure. See https://www.oecd.org/environment/cc/climate-futures/. 2. See Bloom’s S-1: “According to data from MarketLine, the total addressable market (TAM) for electricity at the point of customer consumption was appro

Bloom Energy — Investor Day (December 2020) on 6ix

Bloom Energy — Investor Day (December 2020)

Slide 1: Bloom Energy Virtual Analyst Day 2020

Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures

Slide 3: Financial Overview

Slide 4: 2020 Year-to-Date Financial Performance

Slide 5: Our Business Is Increasingly Resilient

Slide 6: Preliminary FY2021 Financial Metrics Outlook

Slide 7: Drivers of Long-Term Success

Slide 8: Driving the Cost Curve: ~60% Reduction in Cost Since 2015

Slide 9: Simplifying Our Business Model

Slide 10: Targeting 30% Non-GAAP Gross Margins

Slide 11: Targeting 15% Non-GAAP Operating Margins

Slide 12: Near-Term Initiatives Across New and Existing Markets

Slide 13: Valuable and Reliable Growth Company

Slide 14: Long Term Growth Model

Slide 15: Key Milestones for 2021: Operationalizing Our Growth Strategy

Slide 16: A Valuable Company

Slide 17: Enabling Growth

Slide 18: Massive Energy Transition Is Underway

Slide 19: The Flywheel in Effect

Slide 20: Macro Forces

Slide 21: Broad Set of Applications Across the Energy Landscape

Slide 22: Expanding the Base Business TAM

Slide 23: Increased Scale Drives Lower Costs, Which Opens New Markets

Slide 24: Scaling Our US Business – Resiliency Increasingly Critical

Slide 25: Upgrade Cycle: Simple Module Enables Decarbonization

Slide 26: South Korea – A Leader in Decarbonization

Slide 27: Activating Our Strategy Through Sales and Marketing

Slide 28: Simple Add On Module Enables Carbon Capture

Slide 29: Biogas Market Momentum Is Building

Slide 30: Hydrogen TAM

Slide 31: Bloom's Hydrogen Platform

Slide 32: Marine Market Opportunity

Slide 33: International Expansion Beyond South Korea

Slide 34: Anticipated Roadmap

Slide 35: Thank You

Slide 36: Appendix: GAAP to Non-GAAP Reconciliation Gross Margin and Operating Income

Slide 37: Appendix: GAAP to Non-GAAP Reconciliation Adjusted EPS

Slide 38: Appendix: GAAP to Non-GAAP Reconciliation FY'17

Slide 39: Appendix: Footnotes