Fluence Energy, Inc. · NASDAQ:FLNC
Fluence Energy — Barclays CEO Energy and Power Conference 2022
29 slides from Fluence Energy's conference presentation, Sep 6, 2022
Slide 1: Barclays – CEO Energy and Power Conference
Barclays – CEO Energy and Power Conference SEPTEMBER 6-7, 2022
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
SECTION I About Us © Fluence Energy LLC. All rights reserved. | 3
Slide 4: Our mission: transform the way we power our world
OUR MISSION Transform the way we power our world to create a more sustainable future. PURPOSE-BUILT PURPOSE-DRIVEN © Fluence Energy LLC. All rights reserved. | 4
Slide 5: Fluence is uniquely positioned to deliver value
Fluence is uniquely positioned to deliver value Experienced + Category Creator Disruptive Digital and Software Proven Management Team with Global Track Record Products – Fluence IQ™ 14 YEARS IN ENERGY STORAGE 1st EVER LITHIUM-ION OPTIMIZING >18% OF GRID-SCALE 6 GENERATIONS OF TECH BATTERY SYSTEM ON
Slide 6: Fluence is a global leader in energy storage products and services and digital offerings
Fluence is a global leader in energy storage products and services and digital offerings for renewables & storage FLUENCE ENERGY STORAGE (1) & OS FLUENCE SERVICES (2) 5,140+ 205+ 25+ TOTAL MW PROJECTS OPERATING PROJECTS >280 TB 30+ 3,360+ MW OF GLOBAL FLEET DATA CONTROLS APPLICATIONS ASSETS UNDER MA
Slide 7: A trusted partner for leading companies globally
A trusted partner for leading companies globally With a broad range of customers across multiple segments UTILITIES / IPPs FINANCIALS C&I © Fluence Energy LLC. All rights reserved. | 7
Slide 8: Fluence Offerings
SECTION II Fluence Offerings © Fluence Energy LLC. All rights reserved. | 8
Slide 9: We help customers manage the energy transition through configurable packages
We help customers manage the energy transition through configurable product, service, and digital application packages Fluence Energy Storage Products & OS Fluence Services Digital Apps for Renewables and Storage Purpose-built energy storage with integrated hardware Comprehensive operational service
Slide 10: Pre-configured storage products
Pre-configured storage products Delivered as core-only or fully wrapped turnkey systems PCS. Prequalified to work with Safety. Standard safety components include Batteries. Cubes come pre-assembled leading power conversion systems fire detection and suppression, deflagration with batteries, BMS, con
Slide 11: GRIDSTACK
GRIDSTACK™ A grid-scale, industrial-strength energy storage system designed for the most demanding market applications with industry-leading reliability, scalability, and safety. EASILY CONFIGURABLE HIGHLY SCALABLE TOTAL SYSTEM SAFETY • Configure key components from pre- • Scale-out design drives ef
Slide 12: SUNSTACK
SUNSTACK™ A PV-optimized, co-located energy storage system designed to improve and expand the capabilities of solar generation and simplify the interconnection process. PV OPTIMIZED INTEGRATED INTELLIGENCE TOTAL SYSTEM SAFETY • Pre-designed to work with leading • Market dispatch applications support
Slide 13: EDGESTACK
EDGESTACK™ A connection-ready commercial and industrial energy storage system designed to support 500+ kW applications with rapid deployment and minimum footprint. CONNECTION READY FLEET OPTIMIZED TOTAL SYSTEM SAFETY • Fully integrated with all batteries, • Configure to meet your requirements, • Equ
Slide 14: What Fluence services bring to energy storage assets
What Fluence services bring to energy storage assets GUARANTEES PARTS & WARRANTIES MAINTENANCE Safeguard asset revenue Secure the system with back-to- Maintain equipment and potential over project life with back OEM equipment optimal operating condition with degradation, capacity, and warranties and
Slide 15: Customizable packages offer different levels of service options
Customizable packages offer different levels of service options Designed around varying levels of customer capabilities, risk tolerance, and business environment LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 Guided Service Shared Service Complete Service Asset Management Fluence provides comprehensive Shared Serv
Slide 16: FLUENCE MOSAIC
FLUENCE MOSAIC™ An AI-enabled digital platform for solar, wind, and energy storage. Mosaic automates wholesale market participation to maximize the value of assets and portfolios. FORECASTING OPTIMIZATION BIDDING • Advanced machine learning analyzes • Automatically generate optimal bids, • Incorpora
Slide 17: NISPERA
NISPERA™ Cloud-based Asset Performance Management (APM) software that leverages machine learning models and big-data visualization tools to optimize the performance and value of renewable energy assets MONITOR ANALYZE OPTIMIZE • Integrates SCADA data from renewable • Advanced machine learning analyz
Slide 18: FY 2022 Third Quarter Financial Highlights
SECTION III FY 2022 Third Quarter Financial Highlights © Fluence Energy LLC. All rights reserved. | 18
Slide 19: Third Quarter FY22 Highlights
Third Quarter FY22 Highlights Progress on Gross Margin improvement quarter over quarter. Continued focus on profitable growth. PRODUCT REVENUE ORDER INTAKE Generated positive cash flow for the second consecutive quarter increasing our liquidity as we $239M 311 MW focus on improving our margin profil
Slide 20: Passage of Inflation Reduction Act Expected to Drive Dramatic Growth in US Energy Storage
Passage of Inflation Reduction Act Expected to Drive Dramatic Growth in US Energy Storage S&P Global forecasts the IRA accelerates energy storage installations by more than 70 GWs by 2030 Creates increase in overall US demand for energy storage Enhances business cases and provides upside for incr
Slide 21: 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 expected to see initial production in Europe – Facility Asia – Vietnam facility September 2022 expected to come operational since on-line
Slide 22: Update on Improvement Actions
Update on Improvement Actions PROGRESS ON IMPROVEMENT ACTIONS TRENDS VS Q2 Trending vs PQ Shipping TRENDING vs PQ OVERALL STATUS SUPPLY CHAIN • Shipping rates flattening • Seeing benefits of expanding to DISRUPTIONS multiple shipping partners • Port of Shanghai seeing delays through increased option
Slide 23: Reducing adverse margin impacts in FY22; increasing margin through pricing and other levers
PRODUCTS GROSS PROFIT Reducing adverse margin impacts in FY22; Increasing margin through pricing & other levers in FY23/24; Upside from Inflation Reduction Act in FY24+ LEVER #1: REDUCE FY22 ADVERSE LEVER #2: INCREASE AS-SOLD MARGIN MARGIN IMPACTS FOR FY23 and FY24 REVENUE Adverse impacts on GAAP Ma
Slide 24: Total Revenue Guidance
Total Revenue Guidance Reaffirming guidance for FY2022 revenues of approximately $1.1 billion. We expect Q4/FY22 total revenue of approximately $345 million. Our guidance is based on a contracted backlog of $2.1 billion as of June 30, 2022. © Fluence Energy, Inc. All rights reserved. | 24
Slide 25: Definitions
Definitions Pipeline -Represents our uncontracted, potential revenue from energy storage products, service, and digital software contracts currently in process, which have a reasonable likelihood of contract execution within 24 months. Contracted Backlog - Represent signed purchase orders or contrac
Slide 26: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED JUNE 30, 2022 2021 CHANGE CHANGE % NET LOSS $ (60,829) $ (38,776) $ (22,053) (56.9) % ADD (DEDUCT): INTEREST EXPENSE (INCOME), NET (226) 424 (650) 153.3 1,680 INCOME TAX EXPENSE (BENEFIT) (979) (2,659) (158.3
Slide 27: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED JUNE 30, 2022 2021 CHANGE CHANGE % TOTAL REVENUE $239,010 $278,195 $(39,185) (14.1) % COST OF GOODS AND SERVICES 244,207 293,150 (48,943) (16.7) GROSS PROFIT (LOSS) (5,197) (14,955) 9,758 (65.2) ADD (DEDUCT):
Slide 28: Appendix: Non-GAAP Financial Measures & Reconciliations
Appendix: Non-GAAP Financial Measures & Reconciliations ($ in thousands) THREE MONTHS ENDED JUNE 30, 2022 2021 CHANGE CHANGE % NET LOSS $ (60,829) $ (38,776) $ (22,053) (56.9)% ADD (DEDUCT): AMORTIZATION OF INTANGIBLE ASSETS 1,334 888 446 50.2 — STOCK-BASED COMPENSATION (a) 7,397 7,397 n/a OTHER EXP
Slide 29: Barclays – CEO Energy and Power Conference
Barclays – CEO Energy and Power Conference SEPTEMBER 6-7, 2022
Fluence Energy — Barclays CEO Energy and Power Conference 2022 on 6ix