Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Credit Suisse Utility & Renewables Conference 2023
27 slides from Fluence Energy's conference presentation, May 16, 2023
Slide 1: Fluence Energy, Inc.
Fluence Energy, Inc. M AY 1 6 , 2 0 2 3
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: About Us
SE CTION I About Us © Fluence Energy Inc. All rights reserved. | 3
Slide 4: 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. | 4
Slide 5: 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 6: 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 Europe – Potential Asia – Vietnam facility September 2022 Facility could come operational since on-line in 2024 2020 Po
Slide 7: 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 7
Slide 8: Fluence Offerings
SE CTION II Fluence Offerings © Fluence Energy Inc. All rights reserved. | 8
Slide 9: 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 10: 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 11: 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 12: FY 2023 Second Quarter Financial Highlights
SE CTION III FY 2023 Second Quarter Financial Highlights © Fluence Energy Inc. All rights reserved. | 12
Slide 13: Record Q2'23 Performance
Record Q2’23 Performance Robust quarterly order intake and record revenue highlight strong performance Record Q2’23 Order Intake Q2’23 Revenue Recognized Long-term Services AUM3 at 3/31 $847M $698M 2.2 GW 1.1 GWh Solutions1, 2.8 GWh Services, Deployed ~2 GWh Energy >90% Cumulative Deployed Attachmen
Slide 14: Scale and Integrated Model Delivering Successful Results
PROGRESSING ON STRATEGIC OBJECTIVES Scale and Integrated Model Delivering Successful Results Deliver profitable growth • Raising FY23 guidance range to $1.85-$2.0B for revenue; $110-$135M for Adj. gross profit margin1 • Pulling forward profitability timeline; expect to be close to Adj. EBITDA breake
Slide 15: Strong demand and execution lead to increased 2023 revenue guidance
SUPPORTING FY’23 OBJECTIVE Strong demand and execution lead to increased 2023 revenue guidance; still expect to grow 35-40% in 2024 from higher 2023 revenue base Incremental ~$500M of revenue outlook implied across 2023 and 2024 compared to Q1 earnings call ~$11.2 IN C R E A S E IN P IP E L IN E & B
Slide 16: 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 17: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 17
Slide 18: 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 19: Second Quarter 2023 Financial Performance
Second Quarter 2023 Financial Performance Record quarterly performance driven by pulling forward legacy backlog HIGHLIGHTS All figures in $ million, unless specified 3 Q2’22 Q1’23 Q2’23 1. 104% YoY revenue growth in Q2’23, select projects ahead of Revenue 343 310 698 schedule pulling forward revenue
Slide 20: Raising FY'23 guidance; accelerating timeline to profitability
Raising FY’23 guidance; accelerating timeline to profitability Strong visibility to being close to Adj EBITDA breakeven in Q4’23 1. 100% of remaining expected FY23 Revenue in backlog All figures in $ million, unless specified 2. H2 revenue split - Q3 45-50% FY 2023 FY 2023 3. Maintain 35-40% revenue
Slide 21: 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 22: Tremendous Policy Tailwinds for US Energy Storage
SUPPORTING FY’23 OBJECTIVE Tremendous Policy Tailwinds for US Energy Storage Inflation Reduction Act of 2022 1 Per BNEF, IRA increases US TAM by nearly 100 TOPIC ANTICIPATED FLNC IMPACT GWh Per BNEF, expected US market growth to go from >30% to 40-50%. Expected ITC improves overall project returns I
Slide 23: Definitions
Definitions ITEM DEFINITION Pipeline Represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software cont racts, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog Represent signed purchase orders or
Slide 24: 1st Half 2023 Financial Performance
1st Half 2023 Financial Performance Strong Year-On-Year Improvement signaling turnaround near completion All figures in $ million, unless specified H1’22 H1’23 HIGHLIGHTS Revenue 518 1,009 1. 95% YoY revenue growth for Adjusted Gross Profit* (20) 47 H1’23 with ~90% of revenue in H1’23 from legacy co
Slide 25: Q2'23 Ending Cash at $384M, No Recourse Debt
Q2’23 Ending Cash at $384M, No Recourse Debt, In-line with Prior Commitments Expect FY’23 to end with liquidity >$500M; ample liquidity 4 for cash needs for next 12 months All figures in $ million, unless specified DESCRIPTION Q2’23A FY’23 Framework Intact Total Cash1 as of $462 12/31/22 Financing -
Slide 26: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations1 ($ in millions) Q2'23 Q2'22 CHANGE CHANGE % NET LOSS (37.4) (60.7) 23.3 (38)% ($ in millions) Q2'23 Q2'22 ADD (DEDUCT): COVID-19 PANDEMIC – (1.7) INTEREST EXPENSE (INCOME), NET(a) (1.1) 0.5 (1.6) (320)% CARGO LOSS INCIDENT 0.8 4.4 INCOME TAX EXPENSE (BE
Slide 27: Investor Relations Contact
Investor Relations Contact Lexington May Vice President, Finance & Investor Relations Lexington.May@fluenceenergy.com © Fluence Energy, Inc. All rights reserved. | 27
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