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FuelCell Energy August 2021 Company Presentation |
August 2021
Company
Presentation
FuelCell Energy August 2021 Company Presentation |
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements with respect to the Company’s anticipated financial results and statements regarding the Company’s plans and expectations
regarding the continuing development, commercialization and financing of its fuel cell technology and its business plans and strategies. All forward-looking statements
are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include,
without limitation, changes to projected deliveries and order flow, changes to production rate and product costs, general risks associated with product development,
manufacturing, changes in the regulatory environment, customer strategies, ability to access certain markets, unanticipated manufacturing issues that impact power
plant performance, changes in critical accounting policies, access to and ability to raise capital and attract financing, potential volatility of energy prices, rapid
technological change, competition, the Company’s ability to successfully implement its new business strategies and achieve its goals, the Company’s ability to achieve
its sales plans and cost reduction targets, changes by the U.S. Small Business Administration or other governmental authorities to, or with respect to the
implementation or interpretation of, the Coronavirus Aid, Relief, and Economic Security Act, the Paycheck Protection Program or related administrative matters, and
concerns with, threats of, or the consequences of, pandemics, contagious diseases or health epidemics, including the novel coronavirus, and resulting supply chain
disruptions, shifts in clean energy demand, impacts to customers’ capital budgets and investment plans, impacts to the Company’s project schedules, impacts to the
Company’s ability to service existing projects, and impacts on the demand for the Company’s products, as well as other risks set forth in the Company’s filings with the
Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this presentation. The Company expressly
disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any
change in events, conditions or circumstances on which any such statement is based.
The Company refers to non-GAAP financial measures in this presentation. The Company believes that this information is useful to understanding its operating results
and assessing performance and highlighting trends on an overall basis. Please refer to the Company’s earnings release and the appendix to this presentation for
further disclosure and reconciliation of non-GAAP financial measures. (As used herein, the term “GAAP” refers to generally accepted accounting principles in the U.S.)
The information set forth in this presentation is qualified by reference to, and should be read in conjunction with, our Annual Report on Form 10-K for the fiscal year
ended October 31, 2020, filed with the SEC on January 21, 2021, our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2021, filed with the SEC on
June 10, 2021, and our earnings release for the first quarter ended April 30, 2021, filed as an exhibit to our Current Report on Form 8-K filed with the SEC on June 10,
2021.
2
FuelCell Energy August 2021 Company Presentation | 3
36%
36%
28%0%
Service & LicenseAdvanced TechnologiesGenerationProduct
GLOBAL CUSTOMERSCOMPANY OVERVIEW
• Deliver clean and affordable fuel cell solutions for the supply, recovery and storage of energy
• SureSource fuel cell systems provide continuous baseload power and are deployed with utility, municipal, university and industrial and commercial enterprise customers
• Turn-key solutions from design and installation of a project to long-term operation and maintenance of the fuel cell system
COMPANY HIGHLIGHTS
TOTAL FY 2020 REVENUE BREAKDOWN: $70.9M2
High Visibility to Recurring Revenue
1 As of the year ended October 31, 2020, except employees and MWh’s generated which are as of 4/30/2021 2 Percentages are % of FY20 revenue
>250 MW Capacity in Field
>50 Global Plant Installations
3Continents~365 Employees
FCEL Listing: NASDAQ
HQ Danbury, Connecticut
1
>12Million MWh’s generated with SureSource Patented Technology
Demand for Clean, Reliable Electricity Driving Adoption of Fuel Cell Technology
FuelCell Energy: A Global Leader in Fuel Cell Technology – Operating Since 1969
FuelCell Energy August 2021 Company Presentation |
Purpose Statement
4
Enable The World
To Live A Life
Empowered By
Clean Energy
FuelCell Energy August 2021 Company Presentation | 5
FuelCell Energy – Technology Overview
• Fuel cells cleanly and efficiently convert energy in hydrogen rich fuels into electricity and high-quality heat
− The highly efficient electrochemical process emits negligible pollutants since there is no burning of fuel
• A fuel cell stack is comprised of many individual cells grouped together. Stack modules can have one or more stacks
• When a hydrogen-rich fuel (renewable biogas or clean natural gas) enters the fuel cell stack, it reacts with steam in the stack in a reforming reaction to produce hydrogen
• The hydrogen reacts electrochemically with oxygen to produce electric current, heat and water, which supports the hydrogen reforming reaction
• Fuel cells have the ability to continuously generate electricity as long as fuel is continuously supplied
• FuelCell Energy’s SureSourceTM power plants are based on carbonate and solid oxide fuel cell technologies
Carbonate:
• Large cells and stacks provide economies of scale in MW-scale power
generation applications
• Able to capture CO2 from external source for sequestration or utilization
while making power
• Able to export internally produced CO2 from power generation
• Uniquely suited to operate with on-site renewable biogas
• Produce hydrogen through internal reforming and electrolysis
Solid Oxide:
• Compact, lightweight and scalable stack design
• Able to export internally produced CO2 from power generation
• Can operate with natural gas, biogas, or hydrogen fuel
• Can produce hydrogen through internal reforming and electrolysis
• Can alternate between fuel cell and electrolysis modes in hydrogen-
based energy storage systems
Long-Duration Storage of Energy
Electrolyis
Distributed Hydrogen
FuelCell Energy August 2021 Company Presentation |
In-House Fuel Cell Manufacturing Expertise
6
Carbonate Manufacturing Operations (Torrington, CT, USA)
Solid Oxide Manufacturing Operations (Calgary, Canada)
• FuelCell Energy’s advanced manufacturing process utilizes proprietary designs and state-of-the-art manufacturing equipment to produce components that are the heart of the Company’s SureSource carbonate and solid oxide systems
• In Connecticut, both our Torrington production and service facility and Danbury corporate headquarters and research and development facility are ISO 9001:2015 certified
• We also have a manufacturing and service facility in Germany which is also certified under both ISO 9001:2015 and ISO 14001:2015. The facility has the capability to perform final module assembly for up to 20 MW per year of sub-MW fuel cell power platforms to service the fuel cell demand in the European market
FuelCell Energy August 2021 Company Presentation |
Multi-faceted Benefits of FuelCell Platform
Electrochemical conversion of fuel to power reduces emissions, increases efficiency, and improves siting
1
Clean
Energy
Significant Avoided Carbon Emissions and Negligible Particulates, NOx and SOx
1) Grid emissions rates for NOX and CO2 are
from EPA eGrid 2018, US Average non-
baseload rates.
2) Grid particulate emissions rate is from EPA
eGrid PM 2.5 US average for 2018.
3) Solar and Wind capacity factors are average
of range from Lazard LCOE Analysis version
13, November 2019.
4) Utility scale avoided emissions assumes 5%
transmission and distribution losses.
5) SureSource estimates are based on
Company specifications and estimates.
7
FuelCell Energy August 2021 Company Presentation |
Multi-faceted Benefits of FuelCell Platform (Cont.)
Attractive
Economics &
Energy
Security
Easy to Site
Fuel Flexible
The compact footprint of a SureSource system is a large differentiating factor,
specifically in urban settings where land is limited and / or expensive and the power is most
needed
Baseload fuel cells produce more than 450 times the annual MWh than a comparable
sized solar system and requires 40 times less land per MW
Renewable biogas, natural gas, and a variety of other fuels, both gaseous and liquid,
have been proven effective with FuelCell Energy’s technology delivering low to zero carbon.
Providing power at the point of use (distributed power generation), rather than central
generation that requires transmission, greatly improves efficiency, reduces cost, reduces if not
eliminates new grid/distribution network investment, and significantly reduces above ground risk.
Fact: Transmission of power over long distances results in line power losses of 7% to 9% of the
centrally-generated power
8
Electrochemical conversion of fuel to power reduces emissions, increases efficiency, and improves siting
2
3
4
FuelCell Providing On-Site Power Generation
Solar Farm Next to FuelCell Facility
Wastewater / Biofuel applications
deliver net Zero CO2 emission profile
8
FuelCell Energy August 2021 Company Presentation |
Unrivaled Technology To Meet Future Energy Requirements
FuelCell Energy Technology: Winner for Clean Baseload Power
FuelCell Energy
Advantages:
Scalable and cost effective as high
efficiency fuel cells reduce fuel costs
and avoid transmission costs
400x smaller land requirement than
Solar to produce same total energy
output; Solar requires 5x generation
capacity due to limited sun availability
Enhances grid resiliency and offers
a continuous supply of ultra-clean &
efficient power for the electric grid
Easy to site in urban and densely
populated areas
9
TECHNOLOGY BENEFITS
ELECTRICAL
GRID
COMBUSTION
BASED
EQUIPMENT
SOLAR
& WIND
TECHNOLOGIES
SureSourceTM FUEL CELLS
NATURAL GAS BIOGAS
Low CO2 emissions
Low criteria emissions
24x7 Energy output
24x7 Avoided emissions
Compact footprint
Easy to site
Heat for cogeneration
Backup power application
Low cost of energy
Low cost of capacity
FuelCell Energy August 2021 Company Presentation |
• Utility-owned, rate-based
• Enhances resiliency
• 2.8 MW fuel cell on ¼ acre
- ~23,000 MWh/yr.
• 2.2 MW solar on ~9 acres
- ~3,000 MWh/yr.
• Power sold to grid
• Enhances resiliency
• Brownfield revitalization
• 15 MW on 1.5 acres
• Only 12 mo. installation
• Owned by FuelCell
• 5.6 MW with steam for
company campus
• Predictable power solves
grid quality issues
• Immediate savings vs. grid
• Sustainability
More than 12 Million MWh generated
Grid Support with CHP
Resiliency for Pharma
Grid Support /
Urban Redevelopment
Fuel Cell /
Solar Integration
10
• 6-month construction
• 20 MW KOSPO site built in
2018
• Power sold to grid
• Heat provided to district
heating system
• Potential to easily scale
Global Track Record of SureSource Plants’ Reliable Power Generation
FuelCell Energy August 2021 Company Presentation |
Positioned to Serve the Evolving Energy Grid with Current and In-Development Platforms
A GROWING SOURCE OF CLEAN, RELIABLE POWER FOR MICROGRID, CARBON CAPTURE, ELECTROLYSIS AND HYDROGEN ENERGY STORAGE
GENERATION
Solar Power
Nuclear Power Plant
Thermal Power Plant
Wind Power Plant
TRANSMISSION
Hydrogen Fuel
Cities and Offices
Smart Houses
Industrial Plant
Large Scale Carbon Capture and Power
Long-Duration Storage of Energy
Long-Duration Storage of Energy
Electrolyis
Distributed Hydrogen
Combined Heat / Cooling and Power
Carbon Capture and Power
Hydrogen and Power
MicrogridPower
DISTRIBUTION END USERS
11
FuelCell Energy August 2021 Company Presentation | 12
• Enhanced liquidity: Net proceeds from public offerings during fiscal 2020 of more than $170 million at an efficient cost of capital
• Capital structure: Continue to enhance liquidity and deliver an overall lower cost of capital with a goal of creating a capital structure that provides for more efficient financing across our platforms and subsidiaries enabled by continued deployment of our projects, advancement of our technologies, and execution of our strategy
• Optimization of core business: Capitalizing on our core technological strengths in key project markets including biofuels, microgrids, distributed hydrogen, and carbon separation and utilization
• Commercial excellence: Strengthening customer relationships and building a customer-centric reputation; building our sales pipeline by increasing focus on targeted differentiated applications, product sales and geographic market and customer segment expansion
• Innovation: Successfully delivering extended life stack modules; expanding commercialization of new technologies including proprietary gas treatment systems, advancing hydrogen and carbon capture, utilization, and sequestration
• Geographic and market expansion: Targeting growth opportunities in Asia, Europe, United States and the Middle East
• Capital deployment: Making investments that further enhance performance, advance product commercialization, reduce costs and generate targeted return on our investments
• Operational excellence: Executing on our project backlog; lean resource management driving rational cost management across our business
• Achieved ISO 45001:2018 certificate; in addition to ISO 9001:2015 and ISO 14001:2015 certificates previously received.
▪ Safety is core to our everyday practices
▪ Validates Company’s leadership and commitment to put health and safety at the forefront of our priorities.
Disciplined Plan to Strengthen Business, Maximize Operational Efficiencies and Position FuelCell Energy for Growth
Build a Durable Financial Foundation and Enhance Financial Results
Drive Operational Excellence
Penetrate Significant Market Opportunities Where We Can Win
TransformStrengthen
Grow
Largely Completed Began in 2020 with Ongoing Efforts
2021 and Beyond
Powerhouse Business Strategy: Well Positioned for LT Growth and Value Creation
FuelCell Energy August 2021 Company Presentation |
*Only known platform that produces hydrogen and water.
DISTRIBUTED GENERATION DISTRIBUTED HYDROGEN &
CARBON SEPARATION*
HYDROGEN & ENERGY STORAGE CARBON CAPTURE
INDUSTRY APPLICATION • Enabling microgrid power
generation
• Local generation reducing
above ground risk
• Improving the climate and air
quality in local communities
• $1.3B of project backlog as of
April 30, 2021
• Building hydrogen distribution
platform in Long Beach to
support Toyota’s operations to
fuel zero emission FCEV’s and
provide clean water
• Will enable hydrogen
transportation
• No pipeline infrastructure
needed
• Working to advance FuelCell
Energy reversible solid oxide
technology, with support from
the US Department of Energy,
that will support the
technology for electrolysis and
energy storage applications
• Joint development agreement
with ExxonMobil Research and
Engineering Company (EMRE)
• Unique carbon capture
technology that captures
carbon while producing power
SOLUTION
STATUS In Operation Commercially Available Advanced Development Developing with EMRE
ADDITIONAL APPLICATIONS
ENABLED THROUGH OUR
TECHNOLOGY PLATFORM
• Carbon separation to support
industry, such as beverage,
agriculture and more
• Natural gas blending to
reduce carbon
• Hydrogen to repower gas
engines
• Highly efficient electrolysis
• Hydrogen power generation
• Mitigating climate change
Building on Multi-Featured Current Technology Strengths with Next-Gen Technologies
13
Commercializing an Advanced Clean Energy Technology Portfolio
Today 2022+
FuelCell Energy August 2021 Company Presentation |
Hydrogen Generation: Solid Oxide Electrolysis Cell (SOEC) Technology
Competitively Advantaged to Address Promising Market Opportunities for Hydrogen
14
Location: FuelCell Energy headquarters, Danbury, CT
Competitive
Positioning
• Long-duration storage of
energy
• Electrolysis for distributed
hydrogen generation
• Distributed power generation
Our Expertise
• System currently operating at corporate office in Danbury, CT
• Developing a commercial model
• Advanced manufacturing process utilizes proprietary designs and state-of-the-art manufacturing equipment
• Torrington production facility and Danbury corporate headquarters and R&D facility are ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified
Technological Advantages
• Compact, lightweight and scalable stack design
• Can produce hydrogen through internal reforming and electrolysis
• Can alternate between fuel cell and electrolysis modes in hydrogen-based energy storage systems
FuelCell Energy August 2021 Company Presentation |
Providing Flexible Hydrogen Solutions for the Global Energy Transformation
FuelCell Energy Positioned to Deliver Value At Every Step In The Hydrogen Value Chain
15
3 Platforms Capable of Delivering Hydrogen
• Carbonate - Tri-Gen
• Carbonate - REP
• SOFC – SOEC
Differentiated Platforms
• Tri-Gen – Only known platform capable
of producing 1) Hydrogen, 2) Water, and
3) Electricity
• Tri-Gen and REP – Capable of producing
Green and Blue Hydrogen utilizing fuel
• Tri-Gen – Leverage the sale of
power/electricity to offset the cost of
Hydrogen
• SOEC – Capable of delivering 100%
efficiency with the addition of thermal
energy
• SOFC – One fuel cell stack to perform
electrolysis and utilize the produced
Hydrogen to generate zero-carbon,
zero-emission power/electricity
• Distributed Hydrogen platforms – no
pipeline or other transportation
infrastructure required
Industry Feedstock
Transportation
Applications capable of utilizing FuelCell Energy technology
Heating
Power
Generation
•Shipping
•Aviation
•Cars
•Rail
•Trucks
•Buses
•Steel
•Chemicals
•Refineries
H2
Blue
Hydrogen
H2
Green
Hydrogen
H2
Green
Hydrogen
H2
Grid
Hydrogen
Solid Oxide Platform
Solid Oxide Platform
Solid Oxide Platform
Carbonate Platform
Carbonate Platform
Grid
Nuclear
Renewable
Biogas
Natural Gas
Carbon Capture
Carbonate Platform
&
H2
Green
Hydrogen
FuelCell Energy August 2021 Company Presentation |
FuelCell Energy Operating Portfolio and Project Backlog Overview
16(1) Refers to FCEL fiscal quarter
(1)
(1)PROJECT NAME POWER OFF-TAKER LOCATION
RATED CAPACITY
(MW)
ACTUAL COMMERCIAL
OPERATION DATE
PPA TERM
(YEARS)
Central CT State University ("CCSU") CCSU (CT University) New Britian, CT 1.4 FQ2'12 10
UCI Medical Center UCI Medical Center Orange, CA 1.4 FQ1'16 19
Riverside Regional Water Quality Control Plant City of Riverside (CA Municipality) Riverside, CA 1.4 FQ4'16 20
Pfizer, Inc. Pfizer, Inc. Groton, CT 5.6 FQ4'16 20
Santa Rita Jail Alameda County, California Dublin, CA 1.4 FQ1'17 20
Bridgeport Fuel Cell Project Connecticut Light and Power (CT Utility) Bridgeport, CT 14.9 FQ1'13 15
Tulare BioMAT Southern California Edison (CA Utility) Tulare, CA 2.8 FQ1'20 20
Triangle Street Tariff- Eversource (CT Utility) Danbury, CT 3.7 FQ2'20 Tariff
San Bernardino San Bernardino Municipal Water Dept. San Bernardino, CA 1.4 FQ3'21 20
34.0
Operating Generation Portfolio as of June 30, 2021
Total MW Operating:
PROJECT NAME POWER OFF-TAKER LOCATIONRATED CAPACITY
(MW)
PPA TERM
(YEARS)
Groton Sub Base CMEEC (CT Electric Co-op) Groton, CT 7.4 20
Toyota Southern California Edison, Toyota Los Angeles, CA 2.3 20
LIPA 1 PSEG/LIPA, LI NY (Utility) Long Island, NY 7.4 20
CT RFP-2 Eversource/United Illuminating (CT Utilities) Derby, CT 14.8 20
CT RFP-1 Eversource/United Illuminating (CT Utilities) Hartford, CT 7.4 20
Derby (SCEF) Eversource/United Illuminating (CT Utilities) Derby, CT 2.8 20
42.1Total MW In Process:
Projects in Process as of June 30, 2021
FuelCell Energy August 2021 Company Presentation | 17
(1)
(1)
Disruptive Carbon Capture Technology Opening New Markets
Introduction to Carbon Capture Technology
FuelCell Energy has a joint development agreement with ExxonMobil Research and Engineering to develop,
and commercialize a carbon capture system which utilizes the Company’s carbonate fuel cell technology
~$120 billion+ equipment and services market for power generation and industrial CO2 capture technology
Relationship with ExxonMobil & Developmental Milestones
• Carbon capture and storage is the process by which CO₂ that is emitted from the exhaust streams of power plants and other industrial applications, that otherwise would be emitted into the atmosphere, is captured and injected into permanent storage facilities
• Existing processes for capturing CO₂ emissions consume energy, which increases costs; but carbonate fuel cells can produce electricity while they capture and concentrate CO₂ streams
− This drastically reduces the cost of carbon capture giving this technology the potential for wide spread adoption
FuelCell’s SureSource System is the Platform for Carbon Capture
CONCENTRATES CO2
Carbonate fuel cells can concentrate up to 90% of CO₂emissions that come out of power plants – concentrated
emissions can be more easily captured and stored deep
underground
GENERATES POWERCarbon capture using fuel cells generates power, which
is critical to lowering the cost of carbon capture
CUSTOMIZABLEFuel cells are modular solutions, allowing for gradual
investments that help utilities meet carbon capture
targets over time
CLEANER AIRWhen carbonate fuel cells take CO₂ from the power
plant, they eliminate a majority of smog-producing
emissions
2016
•FuelCell Energy signs Joint Development Agreement (JDA) with ExxonMobil Research and Engineering (“EMRE”)
2017 /
2018
•Joint R&D, engineering studies and market assessments completed
•ITC Tax credit reintroduced, and CO2 tax credit introduced, creating a more conducive macro environment
2019 -2021
•New 2-year JDA entered into to work towards large scale commercialization with EMRE
2022 -2023
•Medium scale systems expected to be deployed to support industrial applications with CO2 utilization
2024 and
Beyond
•Large scale deployment globally
FuelCell Energy August 2021 Company Presentation | 18
(1)
(1)
Distributed Hydrogen Technology & Toyota Project
• The SureSource Hydrogen fuel cell power plant is configured to produce additional hydrogen beyond what is needed for power production; generating a stream of hydrogen suitable for industrial or transportation applications
• Application helps address the need for hydrogen fueling infrastructure by cleanly and affordably generating high-purity hydrogen in urban locations
We reconfigure SureSource systems to generate surplus amounts of hydrogen - the first
MW scale carbonate fuel cell power generation plant with a hydrogen fueling station is
being developed for Toyota at the Port of Long Beach in California
Distributed Hydrogen Overview
Hydrogen Generation Project with Toyota
• Toyota will purchase the hydrogen through a long-term purchase agreement, as well as a portion of the electricity generated
• When the plant comes online, the SureSource Hydrogen system will generate approximately 2.3MW of electricity and 1.2 tons of hydrogen per day
− Enough to power the equivalent of about 2,250 average-sized homes and meet daily driving needs of nearly 1,500 vehicles
• Will supply Toyota Logistics Services’ operations at the Port, and the location will be the first 100% renewable Toyota facility in North America
• Received favorable opinion from CPUC that confirms project eligibility under BioMAT
Distributed hydrogen market represents another multi-billion opportunity for FuelCell Energy
H2
Onsite Hydrogen
Fueling Station Fueling Station
Hydrogen
California
Grid
Anaerobic Digesters
Usable Heat
Biogas
Ultra Clean
Power
Tri-Generation Direct
FuelCell® SureSource
Hydrogen power plant
Usable Hot Water
Port of Long Beach
FuelCell Energy August 2021 Company Presentation |
Q2 2021 Update & Financial Performance
FuelCell Energy August 2021 Company Presentation |
Second Quarter of 2021 Messages
20
Executing against project backlog
✓ Execution of power purchase agreement (“PPA”) for 2.8MW Shared Clean
Energy Facility (SCEF) project in Derby, CT; $59.4M of new backlog
✓ Nearing completion on U.S. Navy base in Groton, CT
• Close to resolution on the interconnection agreement with two parties;
prepared to execute the current form of the agreement
• Entering the final phases of construction
• Targeting commercial operations in late summer of 2021
✓ Entered commissioning stage of Biogas project in San Bernardino, CA.
Interconnect agreement authorized; Expected COD in Q3 of fiscal year
2021 (As publicly announced on July 1st, the project has commenced
commercial operation)
✓ Equipment manufacture, fabrication and construction underway on
24.5MW of projects in Yaphank, NY, Derby, CT, and hydrogen project
platform with Toyota at the Port of Long Beach, CA
✓ Annualized production rate increased from 17MW at the end of fiscal year
2020; goal of a 45MW annualized production rate by fiscal year-end 2021
Increased investment in R&D
✓ Driven by push towards commercialization of the Company’s hydrogen
generation and storage platforms
Strengthening leadership position in sustainability
✓ Addressing major global issues with our technology portfolio:
• Distributed generation
• Distributed hydrogen
• Long-duration hydrogen energy storage, power generation, electrolysis
• Carbon Capture, Sequestration and Utilization (CCSU)
1
2
Rendering of the FuelCell Project for Toyota at the Port of Long Beach, CA
SureSource HydrogenTM, our multi value platform that will produce 2.3 MW of clean electricity, 1,200 kg of hydrogen per day, as well as hot water to be used in the washing of Toyota’s hydrogen-fueled cars and Class A trucks
3
FuelCell Energy August 2021 Company Presentation | 21
Second Quarter of Fiscal 2021 Highlights
Revenues of $14.0M compared to $18.9M for Q2 2020
• Service and License declined to $0.7M from $7.0M due to no new module exchanges in the
quarter and cost estimate adjustments related to change in the expected timing of future
module exchanges
• Generation increased to $6.2M from $4.6M, reflecting higher operating output of generation
fleet portfolio and sales of renewable energy credits
• Advanced Technologies decreased to $7.1M from $7.3M
Loss from operations of $(17.4)M compared to $(8.1)M for Q2 2020
• Higher gross loss due to no new module exchanges, higher costs for plant maintenance due
to investments in efforts to improve the fleet performance and lower margin given the mix of
Advanced Technologies activities, partially off-set by lower manufacturing variances
• Operating expenses increased to $12.6M from $8.3M
- Administrative and Selling expenses were impacted by higher non-cash share-based
compensation expense, increased compensation expenses and increased proxy
mailing expenses
- R&D expenses increased as a result of increased spending on hydrogen
commercialization initiatives
Net loss of $(18.9)M compared to $(14.8)M for Q2 2020
Adjusted EBITDA of $(11.3)M compared to $(3.3)M for Q2 20201
(1) Reconciliation of adjusted EBITDA to most directly comparable GAAP financial measure is included in the appendix
FuelCell Energy August 2021 Company Presentation | 221 Refer to reconciliation in Appendix.
Net Loss to Common Stockholders, Net Loss, Loss from Operations and Adjusted EBITDA1 ($M)
Backlog as of April 30th ($B)
▪ Adjusted EBITDA of $(11.3)M compared to $(3.3)M, reflecting lower
revenues, unfavorable margins associated with service as a result of no
new module exchanges and cost estimate adjustments, higher expenses
due to higher non-cash share-based compensation expense,
compensation expenses and proxy mailing costs as well as increased
spending on hydrogen commercialization initiatives
▪ 1.5% decrease in backlog, reflecting the continued execution of backlog
and adjustments to Generation backlog, primarily resulting from the
decrease in fuel pricing which has lowered estimated future revenue,
partially offset by addition of $59.4M of new backlog for the SCEF project
in Derby, CT
$0.183 $0.164
$1.104 $1.116
$0.057 $0.045
Q2 2020 Q2 2021
$1.324$1.344
■ Adv. Tech. ■ Generation ■ Service + License
$(15.6)
$(19.7)
$(14.8)
$(18.9)
$(8.1)
$(17.4)
$(3.3)
$(11.3)
▪ Net Loss to Common Stockholders
▪ Loss from Operations
▪ Adjusted EBITDA1
▪ Net Loss
Q2 2020 Q2 2021
Second Quarter of Fiscal 2021 Financial Performance and Backlog
FuelCell Energy August 2021 Company Presentation |1 As of 4/30/21, 2 Project assets consist of capitalized costs for fuel cell projects, and excludes accumulated depreciation
Strong Liquidity with Increased Unrestricted Cash to Fund Projects in Development
■ Restricted ■ Unrestricted
$9.4
$149.9 $139.1
$30.3
$42.2$32.1
10/31/2019 10/31/2020 4/30/2021
$192.1
$171.2
Cash and Equivalents ($M)
Strong Liquidity
Total cash, restricted cash, and equivalents1 of $171.2M
• Unrestricted cash and cash equivalents of $139.1M as of April 30, 2021, an increase of $110M compared to the end of the second quarter of fiscal 2020
• Enhances the Company’s ability to accelerate strategic initiatives through increased investment in project assets, R&D, sales and marketing efforts
Growing Project Assets
Total project assets2 grew to $223.4M as of April 30, 2021, reflecting progress made against project backlog
■ Completed ■ In Development
$75.1$99.4
$125.5
$84.9
$91.2
$97.9
10/31/2019 10/31/2020 4/30/2021
Project Assets2 ($M)
$190.6
$223.4
$160.0
$39.8
4/30/2021 4/30/2021
Cash, Liquidity and Project Assets
23
FuelCell Energy August 2021 Company Presentation |
FUTURE GOALS
1. Positive EBITDA
2. Positive Free Cash Flow
3. Deliver Returns on Invested Capital
4. Revenue growth from commercialization of our
hydrogen and carbon capture platforms, and
carbon separation and utilization applications
5. Achieve Grid Parity Pricing
Business Plan Targets and Goals
24
KEYS TO BUSINESS PLAN ACHIEVEMENT
• Execution on project backlog & achieving key milestones
• Winning new business around the world
• Continued cost control & efficient capital deployment
• Commercialization of our solid oxide platforms for stationary power, electrolysis / hydrogen production and long duration energy storage
• Commercialization of our carbon capture platform and carbon separation application
Focusing on Profitable Growth Enabled by Strengthened Financial Position
FY 2022 TARGETS
Grow Generation Portfolio1 100%
Revenue Growth1 Double-digit CAGR
Adjusted EBITDA Deliver Positive Adj. EBITDA
1 As compared to results for the fiscal year ended October 31, 2019.
FuelCell Energy August 2021 Company Presentation |
Key Investment Highlights
25
1
2
3
4
Strengthened balance sheet with liquidity to complete project backlog and accelerate commercialization of new technologies
Leadership committed to project execution, achieving financial milestones, and delivering state-of-the-art fuel cell platforms to
contribute to decarbonization and global climate change mitigation
Innovative technology for clean, reliable and scalable distributed baseload power, distributed hydrogen, long-duration storage and
carbon capture, separation and utilization
Progressing on our path of execution to Transform, Strengthen
and Grow the organization for long-term success
5A Leader in Sustainability and Environmental Stewardship with our technology platform solutions
FuelCell Energy August 2021 Company Presentation |Fuel Cell Project: SureSourceTM 7.4 MW
Yaphank, NY
Appendix
FuelCell Energy August 2021 Company Presentation |
GAAP to Non-GAAP Reconciliation
These supplemental non-GAAP measures are provided to assist readers in determining operating performance. Management believes EBITDA and Adjusted EBITDA are useful in assessing
performance and highlighting trends on an overall basis. Management also believes these measures are used by companies in the fuel cell sector and by securities analysts and investors when
comparing the results of the Company with those of other companies. EBITDA differs from the most comparable GAAP measure, net loss attributable to the Company, primarily because it does
not include finance expense, income taxes and depreciation of property, plant and equipment and project assets. Adjusted EBITDA adjusts EBITDA for stock-based compensation, restructuring
charges and other unusual items such as the legal settlement recorded during the first quarter of fiscal 2020, which are considered either non-cash or non-recurring.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these measures. The
measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the exact method of
calculation. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in
conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP.
1) Includes depreciation and amortization on our Generation portfolio of $3.6 million and $8.0 million for the three and six months ended April 30, 2021, respectively, and $3.2 million
and $6.4 million for the three and six months ended April 30, 2020, respectively.
2) Other (income)/expense, net includes gains and losses from transactions denominated in foreign currencies, changes in fair value of derivatives, and other items incurred
periodically, which are not the result of the Company’s normal business operations.
3) The Company received a legal settlement of $2.2 million during the three months ended January 31, 2020, which was recorded as an offset to administrative and selling expenses.
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