Fluence Energy, Inc. · NASDAQ:FLNC

Fluence Energy — Q4 2022 Earnings Presentation

28 slides from Fluence Energy's earnings presentation, Dec 13, 2022

  1. Slide 1: 4Q FY2022 Earnings Presentation

    4Q FY2022 Earnings Presentation DECEMBER 13, 2022

  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

  3. Slide 3: Today's Agenda

    Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 Financial Update Manavendra Sial, SVP & CFO 3 Q&A © Fluence Energy, Inc. All rights reserved. | 3

  4. Slide 4: 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

  5. Slide 5: What we learned, where we are going

    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 for faster integ

  6. Slide 6: 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

  7. Slide 7: Strategic Objectives

    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

  8. Slide 8: 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

  9. Slide 9: 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 in November to be completed in 2023 and 2024 • Further increasing our

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: 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

  15. Slide 15: Transforming the Way We Operate

    SUPPORTING FY’23 OBJECTIVE Transforming the Way We Operate INDIA TECHNOLOGY 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 overhe

  16. Slide 16: Initial success in implementing turnaround

    Initial success in implementing turnaround Progressing on strategic objectives 1 See strong demand and Deliver Profitable Growth policy tailwinds with IRA • Awarded $225M+ for world’s largest energy storage-as-transmission project in Germany order intake expected that carries higher margins. startin

  17. Slide 17: Today's Agenda

    Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 Financial Update Manavendra Sial, SVP & CFO 3 Q&A © Fluence Energy, Inc. All rights reserved. | 17

  18. Slide 18: 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

  19. Slide 19: 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)

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: Today's Agenda

    Today’s Agenda 1 Strategy Update Julian Nebreda, President & CEO 2 Financial Update Manavendra Sial, SVP & CFO 3 Q&A © Fluence Energy, Inc. All rights reserved. | 22

  23. Slide 23: Appendix

    Appendix © Fluence Energy, Inc. All rights reserved. | 23

  24. Slide 24: 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

  25. Slide 25: Total Year 2022 Financial Performance

    Total Year 2022 Financial Performance Tough 2022 results but exiting year with strong Q4’22 Revenue, positive Gross profit 2022 margin was negatively impacted by: All figures in $ million, unless specified 2021 2022 1) Increases in battery prices, inability to Revenue 681 1,199 completely pass on to

  26. Slide 26: 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.

  27. Slide 27: 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

  28. Slide 28: Upcoming Events Investor Relations Contact

    Upcoming Events Investor Relations Contact DEC 13, 2022 Q4 Earnings Call Lexington May Vice President, Finance & Investor Relations Lexington.May@fluenceenergy.com JAN 5, 2023 Goldman Sachs Global Energy and Clean Technology Conference Miami JAN 10, 2023 Needham Growth Conference NYC FEB 2023 Q1 Ear

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