Slide 1: 2Q FY2022 Earnings Presentation
2Q FY2022 Earnings Presentation M AY 1 2 , 2 0 2 2
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: Market Outlook, Performance
Market Outlook, Performance Manuel Perez Dubuc CHIEF EXECUTIVE OFFICER © Fluence Energy, Inc.. All rights reserved. | 3
Slide 4: Key Takeaways
Key Takeaways 1 Continue to see very strong demand for our products and services with opportunities unfolding in Europe as countries strive for energy security and energy independence. 2.8 GW record order intake for Fluence IQ; Nispera acquisition showcases execution of 2 digital strategy. Successfu
Slide 5: Strong products order intake in a seasonally slow quarter; 2.8 GW record order intake for Fluence IQ
Strong products order intake in a seasonally slow quarter; 2.8 GW record order intake for Fluence IQ Year-over-Year Year-over-Year Year-over-Year ENERGY STORAGE PRODUCTS ENERGY SERVICES FLUENCE IQ Deployed + Deployed + Deployed + Contracted MW Contracted MW Contracted MW Contracted MW Contracted MW
Slide 6: FLNC Well Positioned for Increased Demand in EMEA
FLNC Well Positioned for Increased Demand in EMEA The European Commission has launched the REPowerEU REPowerEU calls for nearly doubling the annual initiative that will accelerate the energy transition in Europe renewable build (solar and wind) in Europe from and therefore accelerate the fundamental
Slide 7: Making progress on regional manufacturing, India JV and expanding Fluence IQ offering
Making progress on regional manufacturing, India JV and expanding Fluence IQ offering ENERGY STORAGE PRODUCTS FLUENCE SERVICES FLUENCE IQ Additional Bidding Dispatch Manage Invest 3rd Party Fluence App App App App Apps Apps GRIDSTACK SUNSTACK EDGESTACK Added 582 MW of new contracts in Added 343
Slide 8: Driving Corrective Actions; Macro Environment Remains Challenging
Driving Corrective Actions; Macro Environment Remains Challenging PROGRESS ON TRENDS VS Q1 CORRECTIVE ACTIONS* TRENDING OVERALL STATUS Shipping SUPPLY CHAIN • Shipping rates stabilizing • Port congestions moderating, DISRUPTIONS shortage of drivers still prevalent • Limited shipping capacity Battery
Slide 9: Successful Sixth Generation Installations YTD
DELIVERING ON OUR COMMITMENT Successful Sixth Generation Installations YTD Coso, CA-USA Gridstack Project, USA Killala, Ireland Gridstack Project, Germany Google, Belgium 40 MW/240 MWh 81 MW/124 MWh 10.8 MW/10.8 MWh 3 MW/3 MWh 2.75 MW/2 MWh APPLICATION: APPLICATION: APPLICATION: APPLICATION: APPLICA
Slide 10: Fluence IQ + Nispera
Fluence IQ + Nispera Seyed Madaeni SVP & CHIEF DIGITAL OFFICER © Fluence Energy, Inc.. All rights reserved. | 10
Slide 11: Nispera accelerates Fluence Manage App offering with additional synergies for Bid and Dispatch apps
Nispera accelerates Fluence Manage App offering with additional synergies for Bid and Dispatch apps FLUENCE IQ DIGITAL PLATFORM Highly flexible digital platform supporting applications developed in-house, by customers, and by 3rd parties BID APP DISPATCH APP MANAGE APP INVEST APP THIRD PARTY APPS De
Slide 12: Nispera Expands Fluence IQ's Geographic Footprint
Nispera Expands Fluence IQ’s Geographic Footprint Other 19% Nispera EMEA adds 44% 8 GW Americas 37% FLUENCE IQ NISPERA © Fluence Energy LLC. All rights reserved. | 12
Slide 13: Performance & Guidance
Performance & Guidance Dennis Fehr SVP & CHIEF FINANCIAL OFFICER © Fluence Energy, Inc.. All rights reserved. | 13
Slide 14: Key Financial Takeaways
Key Financial Takeaways 1 Record Q2/FY22 revenue of $343 million driven by fulfilling delayed projects as well as pulling forward anticipated Q3/FY22 revenue. 2 Reduced one-off items from ($53) million in Q1/FY22 to ($23) million in Q2/FY22. Inflationary pressures impact margin trajectory. Strong ca
Slide 15: Key Performance Indicators
New Orders Key Performance (AMOUNTS IN MW) THREE MONTHS ENDED MARCH 31, Indicators 2022 2021 CHANGE CHANGE % ENERGY STORAGE PRODUCTS Q2/FY22 CONTRACTED 582 56 526 939% ENERGY STORAGE SERVICES • Very strong New Orders for CONTRACTED 343 61 282 462% Energy Storage Products DIGITAL CONTRACTS considerin
Slide 16: Total Revenue
Total Revenue Q2/FY22 Year-over-Year Sequential Quarter Q2 v Q2 Total Revenue Q1 v Q2 Total Revenue ($ in millions) • Revenue increased 250% from ($ in millions) Q2/FY21 to Q2/FY22 +250% +96% – Strong growth in energy $343 $343 storage products • Revenue benefited from shifting of revenue from Q1/22
Slide 17: Gross Profit & Adjusted Gross Profit
Gross Profit & Year-over-Year Q2 v Q2 Gross Profit (Loss) Sequential Quarter Q1 v Q2 Gross Profit (Loss) (2) Adjusted Gross Profit ($ in millions) ($ in millions) Q2/FY22 $1 • Gross Profit improved quarter over ($15) ($15) quarter mostly attributable to ($53) • Reduction of Covid-19 related % of cos
Slide 18: Adjusted EBITDA
Adjusted EBITDA Q2/FY22 Year-over-Year Sequential Quarter Q2 v Q2 Adjusted EBITDA(1) Q1 v Q2 Adjusted EBITDA(1) Non-recurring expense adjustments ($ in millions) ($ in millions) mainly included in Q2/FY22 Adjusted EBITDA: • $5 million related to the 2021 cargo loss incident • $(2) million related to
Slide 19: Cash and Cash Equivalents
Cash and Cash Cash and Cash Equivalents Equivalents (1) ($ in millions) Q2/FY22 +44 Cash and cash equivalents • Total cash increased approximately $44 million from the end of Q1/FY22 due to better collections from our customers as well as prepayments for projects. • Cash balance does not reflect $30
Slide 20: FY 2022 total revenue guidance
FY 2022 total revenue guidance Reaffirming guidance for FY2022 revenues in the range of $1.1 billion to $1.3 billion. Now expect to be at the lower end of the range as a result of production delays resulting from COVID-19 lockdowns in China. Our guidance is based on a contracted backlog of $2.2 bill
Slide 21: New Normal Has Elongated Revenue Recognition Process Due to Longer Time to Fulfill Contracts
New Normal Has Elongated Revenue Recognition Process Due to Longer Time to Fulfill Contracts 12 Months 15 Months - 18 Months Purchase Installation Product placed in order service FLUENCE ENERGY Historical Revenue STORAGE PRODUCTS 0% 40-60% >90% Recognition Timeline % OF REVENUE RECOGNIZED Purchase I
Slide 22: Products Gross Profit: FY22 focus on reducing adverse margin impacts; increasing margin through pricing
Products Gross Profit: FY22 focus on reducing adverse margin impacts; increasing margin through pricing is a strong driver for FY23+ LEVER #1: REDUCE FY22 ADVERSE LEVER #2: INCREASE AS-SOLD MARGIN GROSS PROFIT LEVERS MARGIN IMPACTS FOR FY23 and FY24 REVENUE Illustrative Adverse impacts on GAAP Margi
Slide 23: Closing Remarks
Closing Remarks 1 Fundamentals for energy storage have never been stronger. Continue building our ecosystem offering through own product development and 2 Nispera acquisition and executing on our strategy. Progress on reducing adverse margin impacts in a challenging environment; 3 continuing to tack
Slide 24: Appendix
Appendix © Fluence Energy LLC. All rights reserved. | 24
Slide 25: 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 26: Appendix: Quarter over Quarter KPIs
Appendix: Quarter over Quarter KPIs ENERGY STORAGE PRODUCTS ENERGY SERVICES FLUENCE IQ Deployed + Deployed + Deployed + Contracted MW Contracted MW Contracted MW Contracted MW Contracted MW Contracted MW +14% +55% Contracted does not include Nispera 4,832 7,863 acquisition +12% 4,250 +733% 3,283 5,0
Slide 27: Driving Corrective Actions; Macro Environment Remains Challenging
Driving Corrective Actions; Macro Environment Remains Challenging TRENDS VS Q1 PROGRESS ON CORRECTIVE ACTIONS* TRENDING IMPLEMENTED ONGOING OVERALL STATUS Shipping Shipping • Shipping rate stabilizing • Passing through higher rates in new • Shipping earlier where possible SUPPLY CHAIN • Limited ship
Slide 28: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED MARCH 31, 2022 2021 CHANGE CHANGE % NET LOSS $ (60,704) $ (23,532) $ (37,172) (158.0) % ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET 455 381 74 (19.4) INCOME TAX EXPENSE (BENEFIT) 128 509 (381) (74.9) DEPRECI
Slide 29: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED MARCH 31, 2022 2021 CHANGE CHANGE % TOTAL REVENUE $ 342,724 $ 98,133 $ 244,591 249.2 % COST OF GOODS AND SERVICES 357,472 97,118 260,354 268.1 GROSS PROFIT (LOSS) (14,748) 1,015 (15,763) (1,553.0) ADD (DEDUCT
Slide 30: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED MARCH 31, 2022 2021 CHANGE CHANGE % NET LOSS $ (60,704) $ (23,532) $ (37,172) (158.0) % ADD (DEDUCT): AMORTIZATION OF INTANGIBLE ASSETS 920 949 (29) (3.1) STOCK-BASED COMPENSATION (a) 2,728 -- 2,728 n/a NON-R
Slide 31: Overview of Nispera Transaction Key Terms and Timeline
Overview of Nispera Transaction Key Terms and Timeline KEY TERMS About Nispera Transaction Summary Fluence acquires Nispera AG, a Zurich- • Cash paid by FLNC approximately $30 based company providing artificial million intelligence (AI) and machine learning- • Issued 530,471 restricted shares of ena
Slide 32: Key Takeaways Fluence Nispera
1 Results in a combined digital portfolio of 15 GW contracted or under management Key Takeaways 2 Expected to be EBITDA accretive by end of FY2024 Fluence 3 Accelerates the development of new applications for Fluence IQ + 4 Enhances Fluence IQ’s leadership position and recurring revenue Nispera Expa