Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Goldman Sachs Energy and Clean Technology Conference 2023
30 slides from Fluence Energy's conference presentation, January 2023
Slide 1: Goldman Sachs Energy and Clean Technology Conference
JANUARY 5-6, 2023 Goldman Sachs Energy and Clean Technology Conference
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: Section I: About Us
SECTION 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 – Facility Asia – Vietnam facility September 2022 expected to come operational since on-line in 2023 2020 Potent
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 © Fluence Energy Inc. All rights reserved. | 7
Slide 8: Section II: Fluence Offerings
SECTION 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 Services Digital Apps for Renewables and Storage Purpose-built energy storage with integrated hardware Comprehensive operatio
Slide 10: Section III: FY 2022 Fourth Quarter Financial Highlights
SECTION III FY 2022 Fourth Quarter Financial Highlights © Fluence Energy Inc. All rights reserved. | 10
Slide 11: Strong Q4'22 Performance to Close 2022
Strong Q4’22 Performance to Close 2022 Highest quarterly revenue in company history; positive gross margin improvement Q4’22 Order Intake Q4’22 Revenue Recognized Services AUM at 9/30 $560M $442M 2.0 GW 473 MWs Solutions1, 602 MWs Services, 811 Highest Quarterly Revenue Ever 119% attach rate in Q4’2
Slide 12: New Management - What we learned, Where we are going
NEW MANAGEMENT - FIRST 90 DAYS What we learned Where we are going • Energy storage solutions business has • Accelerating integration of offerings to tremendous tailwinds provide holistic end to end bundled solution including services and digital • Digital business platform and model distracted; need
Slide 13: Integrated Ecosystem with Solutions, Services, and Digital
Integrated Ecosystem with Solutions, Services, and Digital Revised go-to-market approach using one integrated sales channel with technology integration KEY ATTRIBUTES SOFTWARE • Retain customer beyond day 1 sale • Accessing customers anywhere along the value chain One • Multi-year visibility to high
Slide 14: Strategic Objectives 2023 and Beyond
Deliver profitable growth. Develop products and solutions that our customers need. Strategic Objectives Convert our supply chain into a competitive 2023 and Beyond advantage. Use Fluence Digital as a competitive differentiator and margin driver. Work better. © Fluence Energy, Inc. All rights reserve
Slide 15: 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 16: Experience Unlocks Value With Customers
SUPPORTING FY’23 OBJECTIVE Experience Unlocks Value With Customers Fluence Gridstack solution selected for performance coupled with our trusted industry experience UNITED STATES 300 MW / 1,200 MWh • Awarded $500+ million contract for one project to be completed in 2023 and 2024 • Further increasing
Slide 17: Strong top of funnel activity gives multi-year revenue certainty
SUPPORTING FY’23 OBJECTIVE Strong top of funnel activity gives multi-year revenue certainty Provides high degree of confidence to multi-year 30%+ revenue growth rate, IRA provides additional upside ~$8.5 PRE-IRA IMPACTS • Strong demand at top of the funnel is a driver of ~$8.5 billion pipeline, near
Slide 18: 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 19: Introducing Fluence's Battery Pack
SUPPORTING FY’23 OBJECTIVE Introducing 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 c
Slide 20: 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 21: Integrated Technology
SUPPORTING FY’23 OBJECTIVE Retooling digital platform and GTM strategy to increase scale and accelerate roll-out at a lower cost Plan to Share Key Performance Indicators in 2023 Digital Moving Forward Bundled Solution KPI Initiative • One go-to-market approach • Bundled sale of Nispera APM with all
Slide 22: Transforming the Way We Operate
SUPPORTING FY’23 OBJECTIVE Transforming the Way We Operate IND IA TECHNOL OG Y CENTRE Doubling Talent in 2023 & Expanding Capabilities While Minimizing 1 Overhead Successful Year 1 establishing facility 2 2023 hiring talent across technology and functional areas 3 Enables operating leverage with ove
Slide 23: Appendix
Appendix © Fluence Energy, Inc. All rights reserved. | 23
Slide 24: Fourth Quarter 2022 Financial Performance
Fourth Quarter 2022 Financial Performance Strongest revenue quarter in the history of Fluence, positive Gross Margin HIGHLIGHTS All figures in $ million, unless specified Q4’21 Q3’22 Q4’22 1. Highest Revenue quarter Revenue 188 239 442 driven by higher volumes Adjusted Gross Profit* 8 2 15 2. Positi
Slide 25: FY 2022 Cash > $500M and No recourse debt
FY 2022 Cash > $500M and No recourse debt Asset-lite and operating cash efficient model with cash usage in FY 22 and FY 23 largely driven by EBITDA All figures in $ million, unless specified DESCRIPTION AMOUNT COMMENTS Total Cash at 10/1/21 $38 Financing $817 IPO Proceeds $936, Debt and Other $(119)
Slide 26: FY 2023 guidance driven by strong & growing backlog
FY 2023 guidance driven by strong & growing backlog 1. ~90% of Revenue in backlog as FY 2023 orders trajectory, operating leverage sets us well for FY 2024 Adj. EBITDA break-even of October 1st 2. Expect 40 / 60 revenue split All figures in $ million, unless specified between 1H / 2H 2023 3. Expect
Slide 27: High confidence path to 2023 Adjusted Gross Profit guidance
High confidence path to 2023 Adjusted Gross Profit guidance Expected FY 2023 margin improvement driven by higher margin deals and better risk management All figures in $ million, unless specified AMOUNT FY 2022 Adjusted Gross Profit $(3) New deals at or close to double-digit margins $40 - $70 • Sign
Slide 28: Definitions
Definitions ITEM DEFINITION Pipeline Represents our uncontracted, potential revenue from energy storage products, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog Represent signed purchase orders or contractual min
Slide 29: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations ($ in millions) Q4’21 Q3’22 Q4’22 FY21 FY22 NET LOSS (87.2) (60.8) (56.2) (162.0) (289.2) ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET 0.5 (0.2) (1.2) 1.4 (0.3) INCOME TAX EXPENSE (BENEFIT) (1.0) (1.0) 1.9 1.8 1.4 DEPRECIATION AND AMORTIZATION 1.6 2.0 2.
Slide 30: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations ($ in millions) Q4’21 Q3’22 Q4’22 FY21 FY22 NET LOSS (87.2) (60.8) (56.2) (162.0) (289.2) a. Included awards that will be ADD (DEDUCT): settled in shares and awards AMORTIZATION OF INTANGIBLE ASSETS 0.9 1.3 1.4 3.6 4.6 that will be settled in cash. STOCK
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