Flux Power Holdings, Inc. · NASDAQ:FLUX
Flux Power — Q3 2022 Earnings Presentation
10 slides from Flux Power's earnings presentation, May 12, 2022
Slide 1: Third Quarter 2022 Financial Results Conference Call
jae Third Quarter 2022 Financial Results Conference Call NASDAQ: FLUX May 12, 2022
Slide 2: Safe Harbor Language
Safe Harbor Language PmuUWD<¢ POWER This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to the Company's future results of operations and financial position, planned products and servic
Slide 3: Key Third Quarter 2022 Highlights
Key Third Quarter 2022 Highlights Revenue increased 89% to $13.2 million in Q3’22 compared to Q3’21 revenue of $7.0 million Achieved 15th consecutive quarter of year-over-year revenue growth Received $20.5 million in customer purchase orders from both existing and new customers including: * Order fo
Slide 4: Strategic Supply Chain & Profitability Improvement Initiatives
Strategic Supply Chain & Profitability Improvement Initiatives Identifying more competitive carriers to reduce shipping costs Utilizing lower cost steel suppliers that meet required specifications Improved manufacturing capacity and production processes (including implementing lean manufacturing) to
Slide 5: Trajectory to Cash Flow Breakeven
Trajectory to Cash Flow Breakeven Strategic Supply Chain & Profitability Improvement Initiatives Have Shown Positive Results * Greater throughput with inventory turns improving from 2.0x to 2.5x during the quarter Inventory levels have remained relatively flat Lower capital expenditures Sequential r
Slide 6: Supply Chain Delays Impact Gross Margin
PmuUW?¢ Supply Chain Delays Impact Gross Margin POWER 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 PYA7 Revenue ($M) BQ1+Q2 = Q3+Q4* FY'18 FY'19 FY'20 PY'24 FY'22 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% FY"7* FY'18* Margin (%) ——Margin - - - Prior Margin Trajectory FY | Quarter EEE FY'19 F
Slide 7: Customer Backlog & Inventory
PmuUWD<¢ POWER Customer Backlog & Inventory $Millions 45 $ * Customer backlog reached a $40 record $38.6 million as of March $35 31, 2022 $30 * Implemented lean 25 A $ manufacturing and expanded $20 2"4 shift to increase production $15 $10 * Inventory increased to $20.9 million at March 31, 2022 due
Slide 8: Highlights
Third Quarter 2022 Financial Highlights $ in millions Revenue Gross profit Gross margin (%) SG&A expenses R&D expenses Cash
Slide 9: Closing Summary
Closing Summary Strategic initiatives deployed and NOW working to increase profitability and mitigate ongoing global supply chain disruptions 2 Execute on record $38.6 million customer order backlog to generate cash receipts 3 Continued increase in both customer demand and related production capacit
Slide 10: Q&A
PmuUWD<¢ POWER Q&A Investor Relations Flux Power Chris Tyson info@fluxpower.com Executive Vice President (— LLU) < MZ North America POWER 2085 S. Melrose Drive, Direct: 949-491-8235 Vista, CA 92081 FLUX@mzgroup.us www.mzgroup.us Fiscal Third Quarter 2022 Financial Results May 12, 2022 10