8-K
Fuelcell Energy Inc (FCEL)
View as plain text
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 29, 2021
FUELCELL ENERGY, INC.
(Exact Name of Registrant as Specified in its Charter)
| | | | | |
|---|---|---|---|---|
| Delaware | | 1-14204 | | 06-0853042 |
| (State or Other Jurisdiction of<br><br>Incorporation) | | (Commission<br><br>File Number) | | (IRS Employer<br><br>Identification No.) |
| | | |||
| | | 3 Great Pasture Road ,<br><br>Danbury , Connecticut | | 06810 |
| | | (Address of Principal Executive Offices) | | (Zip Code) |
Registrant’s telephone number, including area code: ( 203 ) 825-6000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | |
|---|---|---|---|---|
| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, $0.0001 par value per share | | FCEL | | The Nasdaq Stock Market LLC <br>(Nasdaq Global Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On December 29, 2021, FuelCell Energy, Inc. (the “Company”) issued a press release announcing its financial results and providing a business update as of and for the fourth fiscal quarter ended October 31, 2021 and its fiscal year ended October 31, 2021. A copy of this press release is furnished with this report as Exhibit 99.1 and is incorporated herein by reference.
The information furnished in this Item 2.02, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
Item 7.01. Regulation FD Disclosure.
A copy of the investor presentation slides that will be used by the Company during its December 29, 2021 earnings call is furnished with this report as Exhibit 99.2.
The information furnished in this Item 7.01, including Exhibit 99.2, is not deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
By filing this Current Report on Form 8-K and furnishing the information contained herein, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by reason of Regulation FD. The information contained in the investor presentation furnished as Exhibit 99.2 is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this presentation, although it may do so from time to time. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
| | | |
|---|---|---|
| Exhibit No. | Description | |
| | | |
| | | |
| 99.1 | | Press Release issued by FuelCell Energy, Inc. on December 29, 2021. |
| | | |
| 99.2 | | Investor Presentation, dated December 29, 2021. |
| | | |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| | | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | |
|---|---|---|
| | FUELCELL ENERGY, INC. | |
| | | |
| Date: December 29, 2021 | By: | /s/ Michael S. Bishop |
| | | Michael S. Bishop |
| | | Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
FuelCell Energy Reports Fourth Quarter and Fiscal Year 2021 Results ****
Fourth Quarter Fiscal 2021 Financial Highlights
(All comparisons are year-over-year unless otherwise noted)
| ● | Revenues of $13.9 million compared to $17.0 million |
|---|---|
| ● | Loss from operations of $(22.6) million compared to $(17.1) million |
| --- | --- |
| ● | Unrestricted cash and cash equivalents of $432.2 million as of October 31, 2021 compared to $149.9 million as of October 31, 2020 |
| --- | --- |
| ● | Backlog of $1.29 billion as of October 31, 2021 comparable to backlog as of October 31, 2020 |
| --- | --- |
Fiscal Year 2021 Financial Highlights
(All comparisons are year-over-year unless otherwise noted)
| ● | Revenues of $69.6 million compared to $70.9 million |
|---|---|
| ● | Loss from operations of $(64.9) million compared to $(39.2) million |
| --- | --- |
| ● | Net loss of $(101.0) million compared to $(89.1) million |
| --- | --- |
| ● | Adjusted EBITDA of $(35.7) million compared to $(17.7) million |
| --- | --- |
DANBURY, CT – December 29, 2021 -- FuelCell Energy, Inc. (Nasdaq: FCEL) -- a global leader in fuel cell technology—with a purpose of utilizing its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy—today reported financial results for its fourth fiscal quarter and fiscal year ended October 31, 2021 and key business highlights.
“We are pleased with the continued advancement throughout the year of our strategic agenda in terms of infrastructure, solutions and talent to support achieving our long-term goals. We finished fiscal year 2021 with slightly lower revenue compared to fiscal year 2020, but we continued to make important progress on our in-flight projects as well as new technology and applications under development, such as the successful demonstration of the effectiveness of our solid oxide fuel cell,” said Mr. Jason Few, President and CEO. “Since the end of fiscal year 2021, we have favorably resolved our legal proceedings with POSCO Energy Co., Ltd. and clarified our access to the Asian market. We have also advanced through commissioning our 7.4 megawatt power platform located at the U.S. Navy Submarine Base in Groton, CT and our 7.4 megawatt power platform in Yaphank, NY. And, importantly, we extended our joint development agreement with ExxonMobil Research and Engineering Company until April 30, 2022.”
“We continue to make progress against and evolve our Powerhouse Business Strategy, which we launched two years ago,” continued Mr. Few. “As we have advanced, so must our strategy, and we are evolving our strategy to now focus on the key pillars of Grow, Scale and Innovate. We are in a unique period of time where our solutions are increasingly sought after to help solve energy and environmental challenges. We are working toward accelerating the development and deployment of our platforms to position the company to capture the substantial growth opportunity we foresee for both our carbonate and solid oxide solutions.”
“This plan for growth drives the need for expanding operational capabilities and growing talent. We believe our opportunities for commercial success have increased with the resolution of our legal proceedings with POSCO Energy, which includes a commitment to order 20 fuel cell modules from us to service POSCO Energy’s existing installed base of carbonate fuel cell platforms. Lastly, I am proud to report that we have met our annualized production rate target of 45 megawatts on a single shift at our Torrington facility, up from 17 megawatts at the end of fiscal year 2020.”
“Looking forward, we are focused on executing against our existing project backlog, while simultaneously increasing our annualized production rate, repositioning our brand for the future and building the next generation sales structure,” continued Mr. Few. “We are investing in our business to enhance our
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 2
capabilities across the organization and position the business to accelerate growth leveraging our current commercially-available platforms and accelerating the commercialization of our differentiated solid oxide technology delivering electrolysis, long-duration hydrogen energy storage, and hydrogen power generation given the increasing energy transition opportunities we see before us. We look forward to discussing more around our growth opportunities and initiatives as part of our investor day in March.”
Mr. Few concluded, “Fiscal year 2020 was a year in which we focused on solving our operational challenges, whereas fiscal year 2021 was defined by improved execution against our backlog, investing in the capabilities of our global team, improving platform performance, and working to take technology innovations from the laboratory to commercial deployment. As we move into fiscal year 2022, we are invigorated by our emphasis on growth, scale, innovation and execution. The initial work under our Powerhouse Business Strategy built the foundation over the past couple of years, and the addressable opportunities globally given our repositioned company have never been greater for FuelCell Energy.”
Consolidated Financial Metrics
In this press release, FuelCell Energy refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures may not be comparable to similarly titled measures being used and disclosed by other companies. FuelCell Energy believes that this non-GAAP information is useful to an understanding of its operating results and the ongoing performance of its business. A reconciliation of EBITDA, Adjusted EBITDA and any other non-GAAP measures is contained in the appendix to this press release.
| Three Months Ended October 31, | Twelve Months Ended October 31, | ||||||
|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | 2021 | 2020 | Change | **** | 2021 | 2020 | Change |
| Total revenues | 13,935 | 16,999 | -18% | 69,585 | 70,871 | -2% | |
| Gross loss | (8,365) | (8,045) | 4% | (15,639) | (7,725) | 102% | |
| Loss from operations | (22,554) | (17,122) | 32% | (64,902) | (39,166) | 66% | |
| Net Loss | (24,151) | (18,856) | 28% | | (101,025) | (89,107) | 13% |
| EBITDA | (17,603) | (11,573) | 52% | (45,030) | (19,789) | 128% | |
| Net loss attributable to common stockholders | (24,981) | (19,656) | 27% | (104,255) | (92,438) | 13% | |
| Net loss per basic and diluted share | (0.07) | (0.08) | -13% | (0.31) | (0.42) | -26% | |
| Adjusted EBITDA | (11,861) | (8,550) | 39% | (35,713) | (17,704) | 102% |
All values are in US Dollars.
Fourth Quarter of Fiscal 2021 Results
Note: All comparisons between periods are between the fourth quarter of fiscal 2021 and the fourth quarter of fiscal 2020, unless otherwise specified.
Fourth quarter revenue of $13.9 million represents a decrease of 18%, driven by a $5.6 million decrease in service agreements and license revenues discussed below.
| ● | Service agreements and license revenues decreased 102% to $(0.1) million from $5.4 million. The decrease in revenue is primarily due to the fact that there were no module exchanges during the fourth quarter of fiscal 2021. The Company also recorded a $1.0 million reduction in service revenues as a result of higher future cost estimates related to future module exchanges compared to the Company’s prior estimates, which more than offset recognized revenue in the quarter. |
|---|
| ● | Generation revenues increased 31% to $6.7 million from $5.1 million primarily due to higher operating output of the generation fleet portfolio as a result of investments in maintenance activities and an increase in the size of the fleet. |
|---|
| ● | Advanced Technologies contract revenues increased 14% to $7.3 million from $6.4 million. Advanced Technologies contract revenues recognized under the Joint Development Agreement with ExxonMobil Research and Engineering Company (“EMRE”) increased by approximately $0.4 million, reflecting continued performance under our Joint Development Agreement with EMRE during the quarter. The increase in Advanced Technologies contract revenues also reflects an increase in revenue recognized under government contracts of $0.5 million. |
|---|
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 3
Gross loss for the fourth fiscal quarter of 2021 totaled $(8.4) million, compared to a gross loss of $(8.0) million in the comparable prior-year quarter. The higher gross loss for the fourth fiscal quarter of 2021 was the result of impairment charges of $2.8 million related to the Company’s Toyota Project, $1.8 million related to the development cost of two projects no longer being pursued, and $0.4 million related to the Company’s Triangle Street Project, as well as cost estimate adjustments related to future module replacements which resulted in a negative margin impact of approximately $2.6 million. Partially offsetting these charges and adjustments were improved generation gross margin primarily related to an increase in revenues, a decrease in depreciation expense, and higher Advanced Technologies gross margin primarily related to the mix of funded contracts in the quarter.
Operating expenses for the fourth fiscal quarter of 2021 increased to $14.2 million from $9.1 million in the fourth fiscal quarter of 2020. Administrative and selling expenses in the fourth fiscal quarter of 2021 included higher legal expenses associated with tax equity financings and additional share-based compensation expense due to the grants made in November 2020 under our Long-Term Incentive Plan. Research and development expenses of $3.5 million during the fourth fiscal quarter of 2021 reflect increased spending on the Company’s hydrogen commercialization initiatives compared to the comparable prior year period.
Net loss was $(24.2) million in the fourth fiscal quarter of 2021, compared to net loss of $(18.9) million in the fourth fiscal quarter of 2020, due to higher operating expenses and a higher gross loss for the fourth fiscal quarter of 2021 compared to the fourth fiscal quarter of 2020. The fourth fiscal quarter of 2020 included a $2.2 million favorable adjustment for the fair value of the common stock warrants issued to the lenders under the Company’s now extinguished credit facility with Orion Energy Partners Investment Agent, LLC and its affiliated lenders (the “Orion credit facility”), and the fourth fiscal quarter of 2021 included lower interest expense as a result of the early repayment of all amounts owed under the Orion credit facility.
The net loss per share attributable to common stockholders in the fourth fiscal quarter of 2021 was $(0.07), compared to $(0.08) in the fourth fiscal quarter of 2020. The lower net loss per common share was primarily due to the higher weighted average shares outstanding due to share issuances since October 31, 2020, partially offset by the higher net loss attributable to common stockholders.
Adjusted EBITDA totaled $(11.9) million in the fourth fiscal quarter of 2021, compared to Adjusted EBITDA of $(8.6) million in the fourth fiscal quarter of 2020. Please see the discussion of non-GAAP financial measures, including EBITDA and Adjusted EBITDA, as well as applicable reconciliations in the appendix at the end of this release.
Cash, Restricted Cash and Financing Update
On June 11, 2021, the Company entered into an Open Market Sale Agreement with Jefferies LLC and Barclays Capital Inc. (the “Agents”) with respect to an at the market offering program under which the Company may, from time to time, offer and sell shares of the Company’s common stock having an aggregate offering price of up to $500 million. Pursuant to the Open Market Sale Agreement, the Company paid the Agent making each sale a commission equal to 2.0% of the aggregate gross proceeds it received from such sale by such Agent of shares under the Open Market Sale Agreement. From the date of the Open Market Sale Agreement through October 31, 2021, approximately 44.1 million shares were sold under the Open Market Sale Agreement at an average sales price of $8.56 per share, resulting in gross proceeds of $377.2 million, before deducting expenses and sales commissions. Net proceeds to the Company totaled approximately $369.7 million after deducting commissions and offering expenses totaling approximately $7.5 million. The Company plans to use the net proceeds from this offering to accelerate the development and commercialization of our Advanced Technologies products, including our solid oxide platform, for project development, for internal research and development, to invest in capacity expansion for solid oxide and carbonate fuel cell manufacturing, and for project financing, working capital support, and general corporate purposes.
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 4
Cash and cash equivalents and restricted cash and cash equivalents totaled $460.2 million as of October 31, 2021 compared to $192.1 million as of October 31, 2020. The breakdown of unrestricted and restricted cash is as follows:
| ● | As of October 31, 2021, unrestricted cash and cash equivalents totaled $432.2 million, compared to $149.9 million of unrestricted cash and cash equivalents as of October 31, 2020. |
|---|---|
| ● | As of October 31, 2021, restricted cash and cash equivalents totaled $28.0 million, of which $11.3 million was classified as current and $16.7 million was classified as non-current, compared to $42.2 million of restricted cash and cash equivalents as of October 31, 2020, of which $9.2 million was classified as current and $33.0 million was classified as non-current. |
| --- | --- |
Fiscal Year 2022 Projected Investments
The Company has determined, in connection with the evolution of its business strategy, that it will focus on continued investment in the Company to achieve long-term growth, rather than focusing on shorter-term financial metrics such as revenue growth and Adjusted EBITDA.
Expected expenditures in fiscal year 2022 include:
| ● | Capital expenditures are expected to range between $40 million to $50 million for fiscal year 2022, compared to capital expenditures of $6.4 million in fiscal year 2021, which includes expected investments in our factories for carbonate and solid oxide production capacity expansion, the addition of test facilities for new products and components, the expansion of our laboratories and upgrades to and expansion of our business systems. |
|---|
| ● | Company funded research and development activities are expected to increase to $45.0 million to $55.0 million in fiscal year 2022 (compared to approximately $11.3 million in fiscal year 2021) as we expect to accelerate commercialization of our Advanced Technologies solutions including distributed hydrogen, long duration hydrogen-based energy storage and hydrogen power generation. |
|---|
Operations Update
“During the fourth quarter, the Company continued its year-long focus on increasing operational capability, including ramping-up the annualized production rate at the Torrington, Connecticut manufacturing facility to 45 megawatts annually,” commented Michael Lisowski, EVP and Chief Operating Officer. “I am proud to say that, as of November 2021, the Company has achieved this targeted production rate, which was accomplished using only a single manufacturing shift. Our continuous improvement initiatives focus on all facets of manufacturing, such as direct material flow, elimination of waste, and reduction/optimization of production cycle times in assembly and conditioning, all of which were implemented with a continued focus on the health and safety of our workforce. In the field, we made a number of improvements to existing operating platforms, and we saw improvement in terms of generation output and uptime across the fleet.”
LIPA – Yaphank (Long Island), NY. On-site civil construction of this 7.4 MW project is materially complete and the project has achieved mechanical completion. The project is expected to achieve commercial operations on or before December 31, 2021.
In November 2021, the Company closed on a tax equity financing transaction with Franklin Park for this project. Franklin Park’s tax equity commitment totals $12.4 million. As part of the closing in November, the Company received approximately $3.2 million of the total commitment following declaration of mechanical completion. Upon commercial operation being declared, the Company expects to draw the remaining amount of the commitment, approximately $9.2 million.
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 5
Groton Sub Base. As previously disclosed, subsequent to minor issues encountered during the early commissioning process, the Company completed all necessary repairs in November 2021 and has resumed commissioning activities. The Company expects to complete commissioning and achieve commercial operations in mid-January 2022. Once completed, this platform is expected to demonstrate the ability of FuelCell Energy’s platforms to perform at high efficiencies and provide low CO2 to MWh output. Incorporation of the platform into a microgrid is expected to demonstrate the ability of FuelCell Energy’s platforms to increase grid stability and resilience while supporting the U.S. military’s efforts to fortify base energy supply and demonstrating the Navy’s commitment to clean reliable power.
In August 2021, the Company closed on a tax equity financing transaction with East West Bancorp, Inc. (“East West Bank”) for this project. East West Bank’s tax equity commitment totals $15 million. As part of the closing in August, the Company received $3 million of the total commitment.
Toyota -- Port of Long Beach, CA. This 2.3 MW trigeneration platform will produce electricity, hydrogen and water. Fuel cell platform equipment has been built and delivered to the site, and civil construction work is underway. The project is expected to achieve commercial operations on or before June 30, 2022. If commercial operations are delayed beyond June 30, 2022, an extension would be required from Toyota who may or may not grant such extension in its sole discretion.
Derby, CT. On-site civil construction of this 14.0 MW project has advanced, the Company has largely completed the foundational construction, and balance of plant components have been delivered and installed on site. This utility scale fuel cell platform will contain five (5) SureSource 3000 fuel cell systems that will be installed on engineering platforms alongside the Housatonic River.
Backlog
| As of October 31, | |||
|---|---|---|---|
| (Amounts in thousands) | 2021 | 2020 | Change |
| Service | $ 125,918 | $ 146,810 | -14.2% |
| Generation | 1,099,006 | 1,067,228 | 3.0% |
| License | 22,182 | 22,182 | 0.0% |
| Advanced Technologies | 40,763 | 49,153 | -17.1% |
| Total Backlog | $1,287,869 | $ 1,285,373 | 0.0% |
Backlog was largely unchanged year-over-year, reflecting the continued execution of backlog and adjustments to generation backlog, primarily resulting from module exchanges with higher future output and revenues expected and the inclusion of the project with United Illuminating in Derby, Connecticut which was awarded in the second quarter of fiscal year 2021. Advanced Technologies backlog reflects new contracts from the U.S. Department of Energy partially offset by work performed under our joint development agreement with ExxonMobil Research and Engineering Company.
Only projects for which we have an executed power purchase agreement (“PPA”) are included in generation backlog, which represents future revenue under long-term PPAs. Together, the service and generation portion of backlog had a weighted average term of approximately 17 years, with weighting based on the dollar amount of backlog and utility service contracts of up to 20 years in duration at inception.
Backlog represents definitive agreements executed by the Company and our customers. Projects sold to customers (and not retained by the Company) are included in product sales and service backlog and the related generation backlog is removed upon the sale.
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 6
Conference Call Information
FuelCell Energy will host a conference call today beginning at 8:00 a.m. EDT to discuss fourth quarter and full year results for fiscal year 2021 as well as key business highlights. Participants can access the live call via webcast on the Company website or by telephone as follows:
| ● | The live webcast of the call and supporting slide presentation will be available at www.fuelcellenergy.com. To listen to the call, select “Investors” on the home page, proceed to the “Events & Presentations” page and then click on the “Webcast” link listed under the December 29 earnings call event, or click here. |
|---|
| ● | Alternatively, participants can dial 647-689-4106 and state FuelCell Energy or the conference ID number 2758514. |
|---|
The replay of the conference call will be available via webcast on the Company’s Investors’ page at
www.fuelcellenergy.com approximately two hours after the conclusion of the call.
Cautionary Language
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021 in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations”. Forward-looking statements include, 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. These statements are not guarantees of future performance, and 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: general risks associated with product development and manufacturing; general economic conditions; changes in interest rates, which may impact project financing; supply chain disruptions; changes in the utility regulatory environment; changes in the utility industry and the markets for distributed generation, distributed hydrogen, and fuel cell power plants configured for carbon capture or carbon separation; potential volatility of commodity and energy prices that may adversely affect our projects; availability of government subsidies and economic incentives for alternative energy technologies; our ability to remain in compliance with U.S. federal and state and foreign government laws and regulations and the listing rules of The Nasdaq Stock Market; rapid technological change; competition; the risk that our bid awards will not convert to contracts or that our contracts will not convert to revenue; market acceptance of our products; changes in accounting policies or practices adopted voluntarily or as required by accounting principles generally accepted in the United States; factors affecting our liquidity position and financial condition; government appropriations; the ability of the government and third parties to terminate their development contracts at any time; the ability of the government to exercise “march-in” rights with respect to certain of our patents; our ability to successfully market and sell our products internationally; our ability to implement our strategy; our ability to reduce our levelized cost of energy and our cost reduction strategy generally; our ability to protect our intellectual property; litigation and other proceedings; the risk that commercialization of our products will not occur when anticipated or, if it does, that we will not have adequate capacity to satisfy demand; our need for and the availability of additional financing; our ability to generate positive cash flow from operations; our ability to service our long-term debt; our ability to increase the output and longevity of our platforms and to meet the performance requirements of our contracts; our ability to expand our customer base and maintain relationships with our largest customers and strategic business allies; 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 our customers’ capital budgets and investment plans, impacts to our project schedules, impacts to our ability to service existing projects, and impacts on the demand for our 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 press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement contained or incorporated by reference herein to
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 7
reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL) is a global leader in sustainable clean energy technologies that address some of the world’s most critical challenges around energy, safety and global urbanization. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for businesses, utilities, governments and municipalities. Our solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around the globe. We target large-scale power users with our megawatt-class installations globally, and currently offer sub-megawatt solutions for smaller power consumers in Europe. To provide a frame of reference, one megawatt is adequate to continually power approximately 1,000 average sized U.S. homes. We develop turn-key distributed power generation solutions and operate and provide comprehensive service for the life of the power plant. Our fuel cell solution is a clean, efficient alternative to traditional combustion-based power generation, and is complementary to an energy mix consisting of intermittent sources of energy, such as solar and wind turbines. Our customer base includes utility companies, municipalities, universities, hospitals, government entities/military bases and a variety of industrial and commercial enterprises. Our leading geographic markets are currently the United States and South Korea, and we are pursuing opportunities in other countries around the world. FuelCell Energy, based in Connecticut, was founded in 1969.
SureSource, SureSource 1500, SureSource 3000, SureSource 4000, SureSource Recovery, SureSource Capture, SureSource Hydrogen, SureSource Storage, SureSource Service, SureSource Capital, FuelCell Energy, and FuelCell Energy logo are all trademarks of FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
ir@fce.com
203.205.2491
Source: FuelCell Energy*#*
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 8
FUELCELL ENERGY, INC.
Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands, except share and per share amounts)
| | | <br><br> | | | <br><br> |
|---|---|---|---|---|---|
| | | October 31,<br><br>2021 | | | October 31,<br><br>2020 |
| ASSETS | | | | | |
| Current assets: | | | | | |
| Cash and cash equivalents, unrestricted | $ | 432,213 | | $ | 149,867 |
| Restricted cash and cash equivalents – short-term | | 11,268 | | | 9,233 |
| Accounts receivable, net | | 14,730 | | | 9,563 |
| Unbilled receivables | | 8,924 | | | 8,041 |
| Inventories | | 67,074 | | | 50,971 |
| Other current assets | | 9,177 | | | 6,306 |
| Total current assets | | 543,386 | | | 233,981 |
| | | | | ||
| Restricted cash and cash equivalents – long-term | | 16,731 | | | 32,952 |
| Project assets | | 223,277 | | | 161,809 |
| Inventories – long-term | | 4,586 | | | 8,986 |
| Property, plant and equipment, net | | 39,416 | | | 36,331 |
| Operating lease right-of-use assets, net | | 8,109 | | | 10,098 |
| Goodwill | | 4,075 | | | 4,075 |
| Intangible assets, net | | 18,670 | | | 19,967 |
| Other assets | | 16,998 | | | 15,339 |
| Total assets ^(1)^ | $ | 875,248 | | $ | 523,538 |
| LIABILITIES AND EQUITY | | | | | |
| Current liabilities: | | | | | |
| Current portion of long-term debt | $ | 10,085 | | $ | 21,366 |
| Current portion of operating lease liabilities | | 1,032 | | | 939 |
| Accounts payable | 19,267 | | 9,576 | ||
| Accrued liabilities | | 16,099 | | | 15,681 |
| Deferred revenue | | 6,287 | | | 10,399 |
| Preferred stock obligation of subsidiary | | - | | | 938 |
| Total current liabilities | | 52,770 | | | 58,899 |
| | | | | ||
| Long-term deferred revenue | | 30,427 | | | 31,501 |
| Long-term preferred stock obligation of subsidiary | | - | | | 18,265 |
| Long-term operating lease liabilities | | 8,093 | | | 9,817 |
| Long-term debt and other liabilities | | 78,633 | | | 150,651 |
| Total liabilities | | 169,923 | | | 269,133 |
| | | | | | |
| Redeemable Series B preferred stock (liquidation preference of $64,020 as of October 31, 2021 and October 31, 2020) | | 59,857 | | | 59,857 |
| Redeemable noncontrolling interests | | 3,030 | | | - |
| Total equity: | | | | | |
| Stockholders’ equity:<br>Common stock ($0.0001 par value); 500,000,000 and 337,500,000 shares authorized as of October 31, 2021 and 2020 respectively; 366,618,693 and 294,706,758 shares issued and outstanding as of October 31, 2021 and 2020, respectively | | 37 | | | 29 |
| Additional paid-in capital | | 1,908,471 | | | 1,359,454 |
| Accumulated deficit | | (1,265,251) | | | (1,164,196) |
| Accumulated other comprehensive loss | | (819) | | | (739) |
| Treasury stock, Common, at cost (73,430 and 56,411 shares as of October 31, 2021 and 2020, respectively) | | (586) | | | (432) |
| Deferred compensation | | 586 | | | 432 |
| | | | | | |
| Total equity | | 642,438 | | | 194,548 |
| Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ | 875,248 | | $ | 523,538 |
| (1) | The consolidated assets as of October 31, 2021 and 2020 include $54,375 and $0, respectively, of assets of the variable interest entity (“VIE”) that can only be used to settle obligations of the VIE. These assets include cash of $1,364 and $0 as of October 31, 2021 and 2020, respectively, and project assets of $53,012 and $0 as of October 31, 2021 and 2020, respectively. |
|---|
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 9
FUELCELL ENERGY, INC.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(Amounts in thousands, except share and per share amounts)
| | | | | | |
|---|---|---|---|---|---|
| | Three Months Ended October 31, | ||||
| | 2021 | | 2020 | ||
| Revenues: | | | | | |
| Product | $ | - | | $ | - |
| Service and license | | (126) | | | 5,436 |
| Generation | | 6,721 | | | 5,148 |
| Advanced Technologies | | 7,340 | | | 6,415 |
| Total revenues | | 13,935 | | | 16,999 |
| | | | | | |
| Costs of revenues: | | | | | |
| Product | | 1,786 | | | 2,412 |
| Service and license | | 3,743 | | | 8,127 |
| Generation | | 12,752 | | | 10,297 |
| Advanced Technologies | | 4,019 | | | 4,208 |
| Total cost of revenues | | 22,300 | | | 25,044 |
| | | | | | |
| Gross loss | | (8,365) | | | (8,045) |
| | | | | | |
| Operating expenses: | | | | | |
| Administrative and selling expenses | | 10,684 | | | 7,603 |
| Research and development expense | | 3,505 | | | 1,474 |
| Total costs and expenses | | 14,189 | | | 9,077 |
| Loss from operations | | (22,554) | | | (17,122) |
| | | | | | |
| Interest expense | | (1,701) | | | (4,268) |
| Change in fair value of common stock warrant liability | | - | | | 2,225 |
| Other income, net | | 103 | | | 314 |
| Loss before benefit (provision) for income taxes | | (24,152) | | | (18,851) |
| Benefit (provision) for income taxes | | 1 | | | (5) |
| | | | | | |
| Net loss | | (24,151) | | | (18,856) |
| Net income attributable to redeemable noncontrolling interest | | 30 | | | - |
| Net loss attributable to FuelCell Energy, Inc. | | (24,181) | | | (18,856) |
| Series B preferred stock dividends | | (800) | | | (800) |
| Net loss attributable to common stockholders | $ | (24,981) | | $ | (19,656) |
| | | | | | |
| Loss per share basic and diluted: | | | | | |
| Net loss per share attributable to common stockholders | $ | (0.07) | | $ | (0.08) |
| Basic and diluted weighted average shares outstanding | | 366,668,154 | | | 256,375,578 |
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 10
FUELCELL ENERGY, INC.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(Amounts in thousands, except share and per share amounts)
| | | Year Ended October 31, | | |||||
|---|---|---|---|---|---|---|---|---|
| | | 2021 | | | 2020 | | ||
| Revenues: | | | | | | | | |
| Product | | $ | - | | | $ | - | |
| Service and license | | | 19,791 | | | | 25,133 | |
| Generation | | | 24,027 | | | | 19,943 | |
| Advanced Technologies | | | 25,767 | | | | 25,795 | |
| Total revenues | | | 69,585 | | | | 70,871 | |
| <br><br>Costs of revenues: | | | | | | | | |
| Product | | | 7,976 | | | | 9,924 | |
| Service and license | | | 24,735 | | | | 24,545 | |
| Generation | | | 36,017 | | | | 27,873 | |
| Advanced Technologies | | | 16,496 | | | | 16,254 | |
| Total costs of revenues | | | 85,224 | | | | 78,596 | |
| <br><br>Gross loss | | | (15,639 | ) | | | (7,725 | ) |
| <br><br>Operating expenses: | | | | | | | | |
| Administrative and selling expenses | | | 37,948 | | | | 26,644 | |
| Research and development expenses | | | 11,315 | | | | 4,797 | |
| Total costs and expenses | | | 49,263 | | | | 31,441 | |
| <br><br>Loss from operations | | | (64,902 | ) | | | (39,166 | ) |
| <br><br>Interest expense | | | (7,363 | ) | | | (15,294 | ) |
| (Loss) gain on extinguishment of debt and financing obligation | | | (11,156 | ) | | | 1,801 | |
| Extinguishment of Series 1 preferred share obligation | | | (934 | ) | | | - | |
| Change in fair value of common stock warrant liability | | | (15,974 | ) | | | (37,086) | |
| Other (expense) income, net | | | (694 | ) | | | 684 | |
| <br><br>Loss before provision for income taxes | | | (101,023 | ) | | | (89,061 | ) |
| Provision for income taxes | | | (2 | ) | | | (46 | ) |
| <br><br>Net loss | | | (101,025 | ) | | | (89,107 | ) |
| Net income attributable to redeemable noncontrolling interest | | | 30 | | | | - | |
| Net loss attributable to FuelCell Energy, Inc. | | | (101,055 | ) | | | (89,107 | ) |
| Series B preferred stock dividends | | | (3,200 | ) | | | (3,331 | ) |
| <br><br>Net loss attributable to common stockholders | | $ | (104,255 | ) | | $ | (92,438 | ) |
| <br><br>Loss per share basic and diluted: | | | | | | | | |
| Net loss per share attributable to common stockholders | | $ | (0.31 | ) | | $ | (0.42 | ) |
| Basic and diluted weighted average shares outstanding | | | 334,742,346 | | | | 221,960,288 | |
FuelCell Energy Fourth Quarter And Fiscal Year 2021 Results Page 11
Appendix
Non-GAAP Financial Measures
Financial results are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Management also uses non-GAAP measures to analyze and make operating decisions on the business. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA are alternate, non-GAAP measures of operations and operating performance by the Company.
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.
The following table calculates EBITDA and Adjusted EBITDA and reconciles these figures to the GAAP financial statement measure Net loss.
| Three Months Ended October 31, | Year Ended October 31, | |||
|---|---|---|---|---|
| (Amounts in thousands) | 2021 | 2020 | 2021 | |
| Net loss | (24,151) | (18,856) | (101,025) | (89,107) |
| Depreciation and amortization ^(1)^ | 4,951 | 5,549 | 19,872 | 19,377 |
| (Benefit) provision for income tax | (1) | 5 | 2 | 46 |
| Other (income)/expense, net ^(2)^ | (103) | (314) | 694 | (684) |
| Loss (gain) on extinguishment of debt and financing obligation | - | - | 11,156 | (1,801) |
| Extinguishment of Series 1 preferred share obligation | - | - | 934 | - |
| Change in fair value of common stock warrant liability | - | (2,225) | 15,974 | 37,086 |
| Interest expense | 1,701 | 4,268 | 7,363 | 15,294 |
| EBITDA | (17,603) | (11,573) | (45,030) | (19,789) |
| Impairment expense^(3)^ | 5,024 | 2,417 | 5,024 | 2,417 |
| Share-based compensation expense | 718 | 606 | 4,293 | 1,868 |
| Legal settlement ^(4)^ | - | - | - | (2,200) |
| Adjusted EBITDA | (11,861) | (8,550) | (35,713) | (17,704) |
All values are in US Dollars.
| (1) | Includes depreciation and amortization on our Generation portfolio of $3.7 million and $15.0 million for the three months and year ended October 31, 2021, respectively, and $4.3 million and $13.9 million for the three months and year ended October 31, 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) | This expense is included in Generation cost of revenues on the consolidated statement of operations. |
| --- | --- |
| (4) | 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. |
| --- | --- |
Exhibit 99.2
| FuelCell Energy Q4 2021 Investor Presentation<br>Fourth Quarter<br>and Fiscal 2021<br>Financial<br>Results &<br>Strategy Update<br>December 29, 2021 |
|---|
| FuelCell Energy Q4 2021 Investor Presentation<br>This<br>presentation<br>contains<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>the<br>safe<br>harbor<br>provisions<br>of<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>regarding<br>future<br>events<br>or<br>our<br>future<br>financial<br>performance<br>that<br>involve<br>certain<br>contingencies<br>and<br>uncertainties,<br>including<br>those<br>discussed<br>in<br>our<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>October<br>31<br>,<br>2021<br>in<br>the<br>section<br>entitled<br>"Management's<br>Discussion<br>and<br>Analysis<br>of<br>Financial<br>Condition<br>and<br>Results<br>of<br>Operations”<br>..<br>Forward<br>-<br>looking<br>statements<br>include,<br>without<br>limitation,<br>statements<br>with<br>respect<br>to<br>the<br>Company’s<br>anticipated<br>financial<br>results<br>and<br>statements<br>regarding<br>the<br>Company’s<br>plans<br>and<br>expectations<br>regarding<br>the<br>continuing<br>development,<br>commercialization<br>and<br>financing<br>of<br>its<br>fuel<br>cell<br>technology<br>and<br>its<br>business<br>plans<br>and<br>strategies<br>..<br>These<br>statements<br>are<br>not<br>guarantees<br>of<br>future<br>performance,<br>and<br>all<br>forward<br>-<br>looking<br>statements<br>are<br>subject<br>to<br>risks<br>and<br>uncertainties<br>that<br>could<br>cause<br>actual<br>results<br>to<br>differ<br>materially<br>from<br>those<br>projected<br>..<br>Factors<br>that<br>could<br>cause<br>such<br>a<br>difference<br>include,<br>without<br>limitation<br>:<br>general<br>risks<br>associated<br>with<br>product<br>development<br>and<br>manufacturing<br>;<br>general<br>economic<br>conditions<br>;<br>changes<br>in<br>interest<br>rates,<br>which<br>may<br>impact<br>project<br>financing<br>;<br>supply<br>chain<br>disruptions<br>;<br>changes<br>in<br>the<br>utility<br>regulatory<br>environment<br>;<br>changes<br>in<br>the<br>utility<br>industry<br>and<br>the<br>markets<br>for<br>distributed<br>generation,<br>distributed<br>hydrogen,<br>and<br>fuel<br>cell<br>power<br>plants<br>configured<br>for<br>carbon<br>capture<br>or<br>carbon<br>separation<br>;<br>potential<br>volatility<br>of<br>commodity<br>and<br>energy<br>prices<br>that<br>may<br>adversely<br>affect<br>our<br>projects<br>;<br>availability<br>of<br>government<br>subsidies<br>and<br>economic<br>incentives<br>for<br>alternative<br>energy<br>technologies<br>;<br>our<br>ability<br>to<br>remain<br>in<br>compliance<br>with<br>U<br>..<br>S<br>..<br>federal<br>and<br>state<br>and<br>foreign<br>government<br>laws<br>and<br>regulations<br>and<br>the<br>listing<br>rules<br>of<br>The<br>Nasdaq<br>Stock<br>Market<br>;<br>rapid<br>technological<br>change<br>;<br>competition<br>;<br>the<br>risk<br>that<br>our<br>bid<br>awards<br>will<br>not<br>convert<br>to<br>contracts<br>or<br>that<br>our<br>contracts<br>will<br>not<br>convert<br>to<br>revenue<br>;<br>market<br>acceptance<br>of<br>our<br>products<br>;<br>changes<br>in<br>accounting<br>policies<br>or<br>practices<br>adopted<br>voluntarily<br>or<br>as<br>required<br>by<br>accounting<br>principles<br>generally<br>accepted<br>in<br>the<br>United<br>States<br>;<br>factors<br>affecting<br>our<br>liquidity<br>position<br>and<br>financial<br>condition<br>;<br>government<br>appropriations<br>;<br>the<br>ability<br>of<br>the<br>government<br>and<br>third<br>parties<br>to<br>terminate<br>their<br>development<br>contracts<br>at<br>any<br>time<br>;<br>the<br>ability<br>of<br>the<br>government<br>to<br>exercise<br>“march<br>-<br>in”<br>rights<br>with<br>respect<br>to<br>certain<br>of<br>our<br>patents<br>;<br>our<br>ability<br>to<br>successfully<br>marke<br>t<br>and<br>sell<br>our<br>products<br>internationally<br>;<br>our<br>ability<br>to<br>implement<br>our<br>strategy<br>;<br>our<br>ability<br>to<br>reduce<br>our<br>levelized<br>cost<br>of<br>energy<br>and<br>our<br>cost<br>reduction<br>strategy<br>generally<br>;<br>our<br>ability<br>to<br>protect<br>our<br>intellectual<br>property<br>;<br>litigation<br>and<br>other<br>proceedings<br>;<br>the<br>risk<br>that<br>commercialization<br>of<br>our<br>products<br>will<br>not<br>occur<br>when<br>anticipated<br>or,<br>if<br>it<br>does,<br>that<br>we<br>will<br>not<br>have<br>adequate<br>capacity<br>to<br>satisfy<br>demand<br>;<br>our<br>need<br>for<br>and<br>the<br>availability<br>of<br>additional<br>financing<br>;<br>our<br>ability<br>to<br>generate<br>positive<br>cash<br>flow<br>from<br>operations<br>;<br>our<br>ability<br>to<br>service<br>our<br>long<br>-<br>term<br>debt<br>;<br>our<br>ability<br>to<br>increase<br>the<br>output<br>and<br>longevity<br>of<br>our<br>platforms<br>and<br>to<br>meet<br>the<br>performance<br>requirements<br>of<br>our<br>contracts<br>;<br>our<br>ability<br>to<br>expand<br>our<br>customer<br>base<br>and<br>maintain<br>relationships<br>with<br>our<br>largest<br>customers<br>and<br>strategic<br>business<br>allies<br>;<br>changes<br>by<br>the<br>U<br>..<br>S<br>..<br>Small<br>Business<br>Administration<br>or<br>other<br>governmental<br>authorities<br>to,<br>or<br>with<br>respect<br>to<br>the<br>implementation<br>or<br>interpretation<br>of,<br>the<br>Coronavirus<br>Aid,<br>Relief,<br>and<br>Economic<br>Security<br>Act,<br>the<br>Paycheck<br>Protection<br>Program<br>or<br>related<br>administrative<br>matters<br>;<br>and<br>concerns<br>with,<br>threats<br>of,<br>or<br>the<br>consequences<br>of,<br>pandemics,<br>contagious<br>diseases<br>or<br>health<br>epidemics,<br>including<br>the<br>novel<br>coronavirus,<br>and<br>resulting<br>supply<br>chain<br>disruptions,<br>shifts<br>in<br>clean<br>energy<br>demand,<br>impacts<br>to<br>our<br>customers’<br>capital<br>budgets<br>and<br>investment<br>plans,<br>impacts<br>to<br>our<br>project<br>schedules,<br>impacts<br>to<br>our<br>ability<br>to<br>service<br>existing<br>projects,<br>and<br>impacts<br>on<br>the<br>demand<br>for<br>our<br>products,<br>as<br>well<br>as<br>other<br>risks<br>set<br>forth<br>in<br>the<br>Company’s<br>filings<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>..<br>The<br>forward<br>-<br>looking<br>statements<br>contained<br>herein<br>speak<br>only<br>as<br>of<br>the<br>date<br>of<br>this<br>presentation<br>..<br>The<br>Company<br>expressly<br>disclaims<br>any<br>obligation<br>or<br>undertaking<br>to<br>release<br>publicly<br>any<br>updates<br>or<br>revisions<br>to<br>any<br>such<br>statement<br>contained<br>or<br>incorporated<br>by<br>reference<br>herein<br>to<br>reflect<br>any<br>change<br>in<br>the<br>Company’s<br>expectations<br>or<br>any<br>change<br>in<br>events,<br>conditions<br>or<br>circumstances<br>on<br>which<br>any<br>such<br>statement<br>is<br>based<br>..<br>The Company refers to non<br>-<br>GAAP financial measures in this presentation. The Company believes that this information is useful to<br>understanding its operating results and assessing<br>performance and highlighting trends on an overall basis. Please refer to the Company’s earnings release and the appendix to t<br>his<br>presentation for further disclosure and<br>reconciliation of non<br>-<br>GAAP financial measures. (As used herein, the term “GAAP” refers to generally accepted accounting principl<br>es in the U.S.)<br>The information set forth in this presentation is qualified by reference to, and should be read in conjunction with, our Annu<br>al<br>Report on Form 10<br>-<br>K for the fiscal year ended October<br>31, 2021, filed with the SEC on December 29, 2021 and our earnings release for the fourth quarter and the fiscal year ended O<br>cto<br>ber 31, 2021, filed as an exhibit to our Current Report<br>on Form 8<br>-<br>K filed with the SEC on December 29, 2021.<br>Safe Harbor Statement<br>2 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>28%<br>35%<br>37%<br>0%<br>Service & License<br>Advanced Technologies<br>Generation<br>Product<br>COMPANY OVERVIEW<br>A global leader in<br>decarbonizing power<br>and<br>producing hydrogen<br>through our proprietary<br>fuel cell technology<br>FuelCell Energy is working to<br>:<br>•<br>Produce<br>low<br>-<br>to zero<br>-<br>carbon power<br>•<br>Capture<br>carbon and greenhouse gasses<br>while simultaneously generating power;<br>Negligible NOx or<br>SOx<br>emissions<br>•<br>Supply<br>green or blue hydrogen power<br>•<br>Store<br>energy from intermittent<br>renewables by converting exce<br>ss<br>power<br>to hydrogen<br>–<br>then converting hydrogen<br>back into power when it’s needed or<br>delivering to other applications<br>COMPANY HIGHLIGHTS<br>FuelCell Energy: A Global Leader in Fuel Cell Technology<br>–<br>Operating Since 1969<br>3<br>GLOBAL CUSTOMERS<br>TOTAL FY 2021 REVENUE<br>BREAKDOWN: $69.6M<br>2<br>Demand for Clean, Reliable Electricity Driving Adoption of Fuel Cell Technology<br>1<br>As of the year ended October 31, 2021<br>2<br>Percentages of FY21 revenue<br>High Visibility to Recurring Revenue<br>>220 MW<br>Capacity<br>in Field<br>>50<br>Plants Installed<br>Globally<br>3<br>Continents<br>~<br>380<br>Employees<br>FCEL<br>Listing:<br>NASDAQ<br>HQ<br>Danbury,<br>Connecticut<br>1<br>>12<br>Million MWh’s generated<br>with SureSource Patented<br>Technology |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Purpose Statement<br>4<br>Enable<br>The World To<br>Live A Life<br>Empowered By<br>Clean Energy<br>DECARBONIZE POWER<br>—<br>PRODUCE HYDROGEN |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Today’s Messages<br>5<br>Advancing strategic agenda to achieve long<br>-<br>term goals<br>✓<br>7.4MW Utility scale project in<br>Yaphank, NY<br>expected to achieve<br>commercial operation on or before December 31, 2021<br>✓<br>Commercial operation of 7.4MW U.S. Navy base project in<br>Groton, CT<br>expected to commence by mid<br>-<br>January 2022<br>✓<br>2.3 MW Tri<br>-<br>gen (hydrogen, electricity, water) project with Toyota at the<br>Port of<br>Long Beach, CA<br>has received fuel cell platform equipment on<br>-<br>site<br>✓<br>14 MW utility scale project in<br>Derby, CT<br>has<br>received delivery of the fuel<br>cell platform balance of plant equipment<br>Pursuing new projects in the Asian market after reaching<br>favorable agreement with POSCO Energy on December 20,<br>2021<br>Evolving strategy to focus on<br>Grow<br>,<br>Scale<br>and<br>Innovate<br>Advancing our sustainability positioning, both through<br>internal initiatives and by leveraging our technology portfolio<br>to help customers address climate challenges and their<br>sustainability goals<br>Strong balance sheet liquidity and disciplined capital<br>allocation to support future growth and market penetration<br>Photo as of late October 2021 of the 7.4MW power platform in Yaphank, NY<br>1<br>2<br>3<br>4<br>5 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Resolution and Agreement with POSCO Energy Unlocks Path Forward in Asia<br>6<br>•<br>We have differentiated technology<br>that we believe will<br>allow us to compete in some of the world’s most important<br>markets<br>•<br>Clarified our ability to access<br>the South Korea and broader<br>Asian markets<br>•<br>Initial orders to be placed for 20 modules (28 MW)<br>to<br>service existing POSCO Energy South Korean installed base<br>during calendar year 2022<br>•<br>All significant claims and legal disputes resolved<br>between<br>FuelCell Energy and POSCO Energy<br>KOSPO<br>-<br>20 MW FUEL CELL PARK<br>Why is this important for FuelCell Energy?<br>South Korea<br>•<br>Expected to enable existing POSCO Energy Customers<br>to receive the service they deserve<br>•<br>Hydrogen Economy Roadmap announced by the<br>Korean government in January 2019 includes the<br>following targets for the transportation and power<br>generation industries:<br>•<br>6.2M fuel cell vehicles and 1,200 refilling stations<br>•<br>41K hydrogen<br>-<br>fueled buses and conversion of service<br>trucks into hydrogen<br>-<br>powered vehicles<br>•<br>15 GW of fuel cell power generation supply and 2.1<br>GW of fuel cell capacity for homes and buildings<br>•<br>Annual hydrogen supply of ~5.3M tons with a price<br>below $3.00 per kg<br>Japan<br>Goals for hydrogen established<br>by the government of<br>Japan<br>include:<br>•<br>Reducing cost to 30 yen/Nm3 (<br>below 1/3 of current level<br>)<br>by 2030 and 20 yen/Nm3 (<br>below gas<br>-<br>fired costs<br>) by 2050<br>•<br>Increasing volume to reach a maximum supply of 3 million<br>and 20 million tons by 2030 and 2050, respectively<br>20 MW fuel cell project sold and constructed by FuelCell Energy in Incheon, South Korea during 2018 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Proactively Capturing Industry Trends and Expanding Our Future<br>7<br>Markets we are pursuing<br>Distributed Power<br>Front of the Meter & Behind the Meter<br>MW & Sub<br>-<br>MW<br>Zero<br>& Low Carbon<br>Distributed H2<br>Global Distributed H2 Supply<br>Green & Blue<br>Energy Storage<br>Long Duration:<br>Providing grid stability &<br>Renewable enablement<br>Avoid mineral<br>-<br>based storage<br>Carbon Capture<br>Capture Emissions<br>Sequestered or Utilized<br>Capital Investment<br>Decarbonize Power<br>Produce Hydrogen<br>Product Portfolio Well Positioned to Capitalize Across Significant Energy Value Chains |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Q4 2021 Financial Performance |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Q4 2021 Financial Highlights<br>•<br>Revenues decreased approximately 18% to $13.9M, primarily driven by a $5.6M<br>decrease in service agreements and license revenues, reflecting that there were<br>no module exchanges during the quarter and a $1M reduction in service revenues<br>as a result of higher future cost estimates related to future module exchanges<br>•<br>Loss from operations increased to $(22.6)M compared to $(17.1)M<br>, reflecting lower<br>revenues, higher cost of sales related to cost estimate adjustments and<br>impairments, and higher operating expenses that included legal expenses<br>associated with tax equity financings, additional share<br>-<br>based compensation<br>expense, and higher R&D expenses<br>•<br>Net loss of $(24.2)M compared to $(18.9)M<br>•<br>Adjusted EBITDA of $(11.9)M compared to $(8.6)M<br>1<br>Fiscal 2021 Financial Highlights<br>•<br>Revenues decreased approximately 2% to $69.6M, primarily attributable to<br>decrease in service agreements and license revenues<br>•<br>Loss from operations decreased to $(64.9)M compared to $(39.2)M<br>, primarily<br>reflecting higher R&D expenses in support of the Company’s hydrogen<br>commercialization initiatives<br>•<br>Net loss of $(101.0)M compared to $(89.1)M<br>•<br>Adjusted EBITDA of $(35.7)M compared to $(17.7)M<br>1<br>•<br>Material improvement in cash position<br>Q4 and Fiscal 2021 Financial Highlights<br>9<br>1<br>Reconciliation of Adjusted EBITDA to most directly comparable GAAP financial measure is included in the appendix |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Fourth Quarter of Fiscal 2021 Financial Performance and Backlog<br>10<br>Net Loss to Common Stockholders, Net Loss,<br>Loss from Operations and Adjusted EBITDA<br>1<br>($M)<br>Backlog as of October 31st<br>($B)<br>•<br>Adjusted EBITDA of $(11.9)M compared to $(8.6)M, driven by a $5.6<br>million decrease in service agreements and license revenues:<br>•<br>No module exchanges during the fourth quarter of fiscal year 2021<br>•<br>A reduction in service revenues of $1.0M as a result of higher future<br>cost estimates related to future module exchanges<br>•<br>Operating expenses increased to $14.2M from $9.1M, including higher<br>legal expenses associated with tax equity financings, additional share<br>-<br>based compensation expense, and higher R&D expenses in support of<br>the Company’s hydrogen commercialization initiatives<br>•<br>Backlog was largely unchanged year<br>-<br>over<br>-<br>year reflecting continued<br>project execution and adjustments to generation backlog, primarily<br>resulting from (i) module exchanges with higher future output and<br>revenues expected and (ii) inclusion of the project with United<br>Illuminating in Derby, Connecticut which was awarded in the second<br>quarter of fiscal year 2021; Advance Technologies backlog reflects new<br>contracts from the U.S. Department of Energy partially offset by work<br>performed under our<br>joint development agreement with ExxonMobil<br>Research and Engineering Company<br>$0.169<br>$0.148<br>$1.067<br>$1.099<br>$0.049<br>$0.041<br>Q4 2020<br>Q4 2021<br>$<br>1.288<br>$1.285<br>■<br>Adv. Tech.<br>■<br>Generation<br>■<br>Service + License<br>$(19.7)<br>$(25.0)<br>$(18.9)<br>$(24.2)<br>$(17.1)<br>$(22.6)<br>$(8.6)<br>$(11.9)<br>▪<br>Net Loss to Common<br>Stockholders<br>▪<br>Loss from<br>Operations<br>▪<br>Adjusted EBITDA<br>1<br>▪<br>Net Loss<br>Q4 2020<br>Q4 2021<br>1<br>Refer to reconciliation in Appendix. |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Cash, Liquidity and Project Assets<br>11<br>Strong Liquidity with Increased Unrestricted Cash to Fund Projects in Development<br>1<br>As of 10/31/21,<br>2<br>Project assets consist of capitalized costs for fuel cell projects, and excludes<br>accumulated depreciation. Net of depreciation, project assets totaled $223.3 million as of October 31,<br>2021.<br>■<br>Restricted<br>■<br>Unrestricted<br>$9.4<br>$149.9<br>$432.2<br>$30.3<br>$42.2<br>$28.0<br>10/31/2019<br>10/31/2020<br>10/31/2021<br>$192.1<br>$460.2<br>Cash and Equivalents ($M)<br>Strong Liquidity<br>Total cash, restricted cash and equivalents of $460.2M<br>1<br>•<br>Unrestricted cash and cash equivalents of $432.2M<br>1<br>, an<br>increase of $282.3M (or ~188%) compared to October 31,<br>2020<br>•<br>The increase in cash reflects the following:<br>-<br>Sale of common stock during fiscal year 2021<br>-<br>Proceeds from tax equity project financing<br>-<br>Use of $98.6 million for debt repayment<br>•<br>Enhances the Company’s ability to accelerate strategic<br>initiatives through increased investment in project assets,<br>manufacturing, R&D, sales and marketing efforts<br>Growing Project Assets<br>Total project assets<br>2<br>grew to $243.1M<br>as of October 31,<br>2021, reflecting progress made against project backlog<br>■<br>Completed<br>■<br>In Development<br>$75.1<br>$99.4<br>$116.3<br>$84.9<br>$91.2<br>$126.8<br>$0.0<br>$50.0<br>$100.0<br>$150.0<br>$200.0<br>10/31/2019<br>10/31/2020<br>10/31/2021<br>Project Assets<br>2<br>($M)<br>$190.6<br>$160.0<br>$39.8<br>$243.1 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>In 2019, we developed “Powerhouse” strategy to<br>Transform<br>,<br>Strengthen<br>and<br>Grow<br>the business<br>Significant Accomplishments Since Launch of Powerhouse Business Strategy<br>12<br>Disciplined Plan to Strengthen Business, Maximize Operational Efficiencies and Position FuelCell Energy for Growth<br>Largely Completed<br>Began in 2020 with Ongoing Efforts<br>2021 and Beyond<br>Build a Durable Financial<br>Foundation and Enhance<br>Financial Results<br>or<br>•<br>Reduced corporate<br>debt<br>•<br>Enhanced liquidity<br>•<br>Capital structure<br>TRANSFORM<br>01<br>Drive Operational<br>Excellence<br>•<br>Capital deployment<br>•<br>Operational excellence<br>STRENGTHEN<br>02<br>Penetrate Significant<br>Market Opportunities<br>Where We Can Win<br>•<br>Optimization of core<br>business<br>•<br>Commercial excellence<br>•<br>Innovation<br>•<br>Geographic and market<br>expansion<br>GROW<br>03 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Having made substantial progress on key initiatives, we will pivot to Grow, Scale and Innovate<br>Powerhouse Business Strategy Evolving to Next Phase for Long<br>-<br>Term Growth<br>13<br>Scale Our Existing Platform<br>to Support Growth<br>Innovate for<br>the Future<br>Penetrate Significant Market<br>Opportunities<br>•<br>Invest<br>•<br>Extend process leadership<br>•<br>Broaden & deepen our human capital<br>•<br>Continue product innovations<br>•<br>Deepen participation in the<br>developing hydrogen economy<br>•<br>Diversify our revenue streams by<br>delivering products that support the<br>global energy transition<br>•<br>Optimize the core business<br>•<br>Drive commercial excellence<br>•<br>Expand geographically and by market<br>SCALE<br>INNOVATE<br>GROW |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Investing for Growth<br>14<br>Manufacturing Capability<br>Expanding manufacturing<br>capability for our carbonate<br>(Distributed Generation,<br>Distributed Hydrogen & Carbon<br>Separation/Carbon Capture)<br>and solid oxide (Hydrogen &<br>Energy Storage) platforms<br>Generation Portfolio<br>Expansion<br>Executing against project backlog<br>to increase output from our<br>generation portfolio<br>Talent, Capability<br>and Expertise<br>Recruited key talent to enhance<br>our technical engineering depth,<br>grow our sales pipeline,<br>reintroduce our brand, improve<br>project execution, engage<br>customers with a new service<br>model, and build human capital<br>recruitment, development, and<br>retention capability<br>Commercialization<br>of Advanced<br>Technology Programs<br>Investing in commercial<br>deployment of our solid oxide<br>platform and carbon capture<br>solutions<br>Rendering of Platform When Completed (Derby, CT)<br>FuelCell Energy Headquarters (Danbury, CT)<br>Solid Oxide Manufacturing Operations (Calgary, Canada) |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Large scale investment to enable FuelCell Energy to compete and<br>meet the market needs in medium<br>-<br>and long<br>-<br>term<br>Anticipated capital expenditures of $40M to $50M for fiscal year 2022<br>•<br>Investments in our factories for carbonate and solid oxide<br>production capacity expansion<br>•<br>Addition of test facilities for new products and components<br>•<br>Expansion of laboratories<br>•<br>Upgrades to and expansion of our business systems<br>Planned $45M to $55M in company funded research and development<br>activities in fiscal year 2022<br>to accelerate commercialization of our<br>Advanced Technologies solutions<br>•<br>Distributed hydrogen<br>•<br>Long duration hydrogen<br>-<br>based energy storage<br>•<br>Hydrogen power generation<br>FY2022 Projected Investments for Future Growth<br>15<br>Evolving Strategy has the Company Pivoting Focus from Shorter<br>-<br>term Financial Metrics to Longer<br>-<br>term Growth Achievement<br>Capital Expenditures ($M)<br>$2.2<br>$0.4<br>$6.4<br>$40<br>–<br>$50<br>FY2019<br>FY2020<br>FY2021<br>FY2022E<br>Research and Development ($M)<br>$13.8<br>$4.8<br>$11.3<br>$45<br>–<br>$55<br>FY2019<br>FY2020<br>FY2021<br>2022E |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>KEYS TO BUSINESS PLAN ACHIEVEMENT<br>•<br>Serving our customers with industry<br>-<br>leading support<br>•<br>Retaining and recruiting world class human capital<br>•<br>Executing on project backlog<br>•<br>Expanding manufacturing capacity<br>•<br>Winning new business around the world<br>•<br>Recycling project funding to reduce our cost of capital<br>•<br>Employing targeted capital deployment in support of<br>future growth<br>•<br>Achieving product commercialization<br>•<br>Improving manufacturing costs and product performance<br>through continuous innovation<br>•<br>Investing in our marketing presence and capability<br>Organizational Key Drivers to Our Strategy<br>16<br>“We are in a<br>unique period of time<br>where our<br>solutions are<br>increasingly sought after<br>to help solve<br>energy and environmental challenges. We are<br>working toward<br>accelerating the development and<br>deployment of our platforms<br>to position the company<br>to<br>capture the substantial growth opportunity<br>we<br>foresee for both our carbonate and solid oxide<br>solutions.”<br>–<br>Jason Few<br>Investor Day<br>Coming in<br>March 2022<br>Strategy in Place to Deliver Longer<br>-<br>term Growth |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Key Investment Highlights<br>17<br>Strengthened balance sheet<br>with additional liquidity to complete<br>project backlog, accelerate commercialization of new<br>technologies and invest in capacity expansion for solid oxide and<br>carbonate fuel cell manufacturing<br>Leadership committed to project execution,<br>achieving financial<br>milestones, and delivering<br>state<br>-<br>of<br>-<br>the<br>-<br>art fuel cell platforms to<br>contribute to decarbonization goals and global climate change<br>mitigation<br>Innovative technology<br>for clean, reliable and scalable distributed<br>baseload power, distributed hydrogen, long<br>-<br>duration storage and<br>carbon capture, separation and utilization<br>Progressing on our path of execution to<br>Grow, Scale, and Innovate<br>to drive long<br>-<br>term growth<br>A Leader in<br>Sustainability and Environmental Stewardship<br>with<br>our technology platform solutions<br>1<br>2<br>3<br>4<br>5 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Q&A |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Appendix |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>GAAP to Non<br>-<br>GAAP Reconciliation<br>Financial<br>results<br>are<br>presented<br>in<br>accordance<br>with<br>accounting<br>principles<br>generally<br>accepted<br>in<br>the<br>United<br>States<br>(“GAAP”)<br>..<br>Management<br>also<br>uses<br>non<br>-<br>GAAP<br>measures<br>to<br>analyze<br>and<br>make<br>operating<br>decisions<br>on<br>the<br>business<br>..<br>Earnings<br>before<br>interest,<br>taxes,<br>depreciation<br>and<br>amortization<br>(“EBITDA”)<br>and<br>Adjusted<br>EBITDA<br>are<br>alternate,<br>non<br>-<br>GAAP<br>measures<br>of<br>operations<br>and<br>operating<br>performance<br>by<br>the<br>Company<br>..<br>These<br>supplemental<br>non<br>-<br>GAAP<br>measures<br>are<br>provided<br>to<br>assist<br>readers<br>in<br>determining<br>operating<br>performance<br>..<br>Management<br>believes<br>EBITDA<br>and<br>Adjusted<br>EBITDA<br>are<br>useful<br>in<br>assessing<br>performance<br>and<br>highlighting<br>trends<br>on<br>an<br>overall<br>basis<br>..<br>Management<br>also<br>believes<br>these<br>measures<br>are<br>used<br>by<br>companies<br>in<br>the<br>fuel<br>cell<br>sector<br>and<br>by<br>securities<br>analysts<br>and<br>investors<br>when<br>comparing<br>the<br>results<br>of<br>the<br>Company<br>with<br>those<br>of<br>other<br>companies<br>..<br>EBITDA<br>differs<br>from<br>the<br>most<br>comparable<br>GAAP<br>measure,<br>net<br>loss<br>attributable<br>to<br>the<br>Company,<br>primarily<br>because<br>it<br>does<br>not<br>include<br>finance<br>expense,<br>income<br>taxes<br>and<br>depreciation<br>of<br>property,<br>plant<br>and<br>equipment<br>and<br>project<br>assets<br>..<br>Adjusted<br>EBITDA<br>adjusts<br>EBITDA<br>for<br>stock<br>-<br>based<br>compensation,<br>restructuring<br>charges<br>and<br>other<br>unusual<br>items<br>such<br>as<br>the<br>legal<br>settlement<br>recorded<br>during<br>the<br>first<br>quarter<br>of<br>fiscal<br>2020<br>,<br>which<br>are<br>considered<br>either<br>non<br>-<br>cash<br>or<br>non<br>-<br>recurring<br>..<br>While<br>management<br>believes<br>that<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>provide<br>useful<br>supplemental<br>information<br>to<br>investors,<br>there<br>are<br>limitations<br>associated<br>with<br>the<br>use<br>of<br>these<br>measures<br>..<br>The<br>measures<br>are<br>not<br>prepared<br>in<br>accordance<br>with<br>GAAP<br>and<br>may<br>not<br>be<br>directly<br>comparable<br>to<br>similarly<br>titled<br>measures<br>of<br>other<br>companies<br>due<br>to<br>potential<br>differences<br>in<br>the<br>exact<br>method<br>of<br>calculation<br>..<br>The<br>Company’s<br>non<br>-<br>GAAP<br>financial<br>measures<br>are<br>not<br>meant<br>to<br>be<br>considered<br>in<br>isolation<br>or<br>as<br>a<br>substitute<br>for<br>comparable<br>GAAP<br>financial<br>measures<br>and<br>should<br>be<br>read<br>only<br>in<br>conjunction<br>with<br>the<br>Company’s<br>consolidated<br>financial<br>statements<br>prepared<br>in<br>accordance<br>with<br>GAAP<br>..<br>1)<br>Includes<br>depreciation<br>and<br>amortization<br>on<br>our<br>Generation<br>portfolio<br>of<br>$<br>3<br>..<br>7<br>million<br>and<br>$<br>15<br>..<br>0<br>million<br>for<br>the<br>three<br>months<br>and<br>year<br>ended<br>October<br>31<br>,<br>2021<br>,<br>respectively,<br>and<br>$<br>4<br>..<br>3<br>million<br>and<br>$<br>13<br>..<br>9<br>million<br>for<br>the<br>three<br>months<br>and<br>year<br>ended<br>October<br>31<br>,<br>2020<br>,<br>respectively<br>..<br>2)<br>Other<br>(income)/expense,<br>net<br>includes<br>gains<br>and<br>losses<br>from<br>transactions<br>denominated<br>in<br>foreign<br>currencies,<br>changes<br>in<br>fair<br>value<br>of<br>derivatives,<br>and<br>other<br>items<br>incurred<br>periodically,<br>which<br>are<br>not<br>the<br>result<br>of<br>the<br>Company’s<br>normal<br>business<br>operations<br>..<br>3)<br>This<br>expense<br>is<br>included<br>in<br>Generation<br>cost<br>of<br>revenues<br>on<br>the<br>consolidated<br>statement<br>of<br>operations<br>..<br>4)<br>The<br>Company<br>received<br>a<br>legal<br>settlement<br>of<br>$<br>2<br>..<br>2<br>million<br>during<br>the<br>three<br>months<br>ended<br>January<br>31<br>,<br>2020<br>,<br>which<br>was<br>recorded<br>as<br>an<br>offset<br>to<br>administrative<br>and<br>selling<br>expenses<br>..<br>20<br>The following table calculates EBITDA and Adjusted EBITDA and reconciles these figures to the GAAP financial statement measur<br>e N<br>et loss. |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>PROJECT NAME<br>POWER OFF-TAKER<br>LOCATION<br>RATED CAPACITY<br>(MW)<br>ACTUAL COMMERCIAL<br>OPERATION DATE<br>PPA TERM<br>(YEARS)<br>Central CT State University ("CCSU")<br>CCSU (CT University)<br>New Britian, CT<br>1.4<br>FQ2'12<br>10<br>UCI Medical Center<br>UCI Medical Center<br>Orange, CA<br>1.4<br>FQ1'16<br>19<br>Riverside Regional Water Quality Control Plant<br>City of Riverside (CA Municipality)<br>Riverside, CA<br>1.4<br>FQ4'16<br>20<br>Pfizer, Inc.<br>Pfizer, Inc.<br>Groton, CT<br>5.6<br>FQ4'16<br>20<br>Santa Rita Jail<br>Alameda County, California<br>Dublin, CA<br>1.4<br>FQ1'17<br>20<br>Bridgeport Fuel Cell Project<br>Connecticut Light and Power (CT Utility)<br>Bridgeport, CT<br>14.9<br>FQ1'13<br>15<br>Tulare BioMAT<br>Southern California Edison (CA Utility)<br>Tulare, CA<br>2.8<br>FQ1'20<br>20<br>Triangle Street<br>Tariff- Eversource (CT Utility)<br>Danbury, CT<br>3.7<br>FQ2'20<br>Tariff<br>San Bernardino<br>San Bernardino Municipal Water Dept.<br>San Bernardino, CA<br>1.4<br>FQ3'21<br>20<br>34.0<br>Generation Operating Portfolio as of October 31, 2021<br>Total MW Operating:<br>FuelCell Energy Operating Portfolio and Project Backlog Overview<br>21<br>(1)<br>Refers to FCEL fiscal quarter<br>(1)<br>(1)<br>PROJECT NAME<br>POWER OFF-TAKER<br>LOCATION<br>RATED CAPACITY<br>(MW)<br>PPA TERM<br>(YEARS)<br>Groton Sub Base<br>CMEEC (CT Electric Co-op)<br>Groton, CT<br>7.4<br>20<br>Toyota<br>Southern California Edison, Toyota<br>Los Angeles, CA<br>2.3<br>20<br>LIPA Yaphank Project<br>PSEG/LIPA, LI NY (Utility)<br>Long Island, NY<br>7.4<br>18<br>CT RFP-2<br>Eversource/United Illuminating (CT Utilities)<br>Derby, CT<br>14<br>20<br>CT RFP-1<br>Eversource/United Illuminating (CT Utilities)<br>Hartford, CT<br>7.4<br>20<br>Derby (SCEF)<br>Eversource/United Illuminating (CT Utilities)<br>Derby, CT<br>2.8<br>20<br>41.3<br>Total MW In Process:<br>Projects in Process as of October 31, 2021 |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>1<br>Only known platform that produces hydrogen and water.<br>DISTRIBUTED GENERATION<br>DISTRIBUTED HYDROGEN &<br>CARBON SEPARATION<br>1<br>HYDROGEN & ENERGY STORAGE<br>CARBON CAPTURE<br>INDUSTRY APPLICATION<br>•<br>Enabling microgrid power<br>generation<br>•<br>Local generation reducing<br>above ground risk<br>•<br>Improving the climate and air<br>quality in local communities<br>•<br>$1.29B of project backlog as of<br>October 31, 2021<br>•<br>Building hydrogen distribution<br>platform in Long Beach to<br>support Toyota’s operations to<br>fuel zero emission FCEV’s and<br>provide clean water<br>•<br>Will Enable hydrogen<br>transportation<br>•<br>No pipeline infrastructure<br>needed<br>•<br>Working to advance FuelCell<br>Energy reversible solid oxide<br>technology, with support from<br>the US Department of Energy,<br>that will support the<br>technology for electrolysis and<br>energy storage applications<br>•<br>Joint development agreement<br>with ExxonMobil Research and<br>Engineering Company (EMRE)<br>•<br>Unique carbon capture<br>technology that captures<br>carbon while producing power<br>SOLUTION<br>STATUS<br>In Operation<br>Commercially Available<br>Advanced Development<br>Developing with EMRE<br>ADDITIONAL APPLICATIONS<br>ENABLED THROUGH OUR<br>TECHNOLOGY PLATFORM<br>•<br>Carbon separation to support<br>industry, such as beverage,<br>agriculture and more<br>•<br>Natural gas blending to<br>reduce carbon<br>•<br>Hydrogen to repower gas<br>engines<br>•<br>Highly efficient electrolysis<br>•<br>Hydrogen power generation<br>•<br>Mitigating climate change<br>Building on Multi<br>-<br>Featured Current Technology Strengths with Next<br>-<br>Gen Technologies<br>22<br>Commercializing an Advanced Clean Energy Technology Portfolio<br>Today<br>2022+ |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Providing Flexible Hydrogen Solutions<br>for the Global Energy Transformation<br>Positioned to Deliver Value At Every Step In The Hydrogen Value Chain<br>23<br>3 Platforms Capable of<br>Delivering Hydrogen<br>•<br>Carbonate<br>-<br>Tri<br>-<br>Gen<br>•<br>Carbonate<br>-<br>REP<br>•<br>SOFC<br>–<br>SOEC<br>Differentiated Platforms<br>•<br>Tri<br>-<br>Gen<br>–<br>Only known platform capable<br>of producing 1) Hydrogen, 2) Water, and<br>3) Electricity<br>•<br>Tri<br>-<br>Gen and REP<br>–<br>Capable of producing<br>Green and Blue Hydrogen utilizing fuel<br>•<br>Tri<br>-<br>Gen<br>–<br>Leverage the sale of<br>power/electricity to offset the cost of<br>Hydrogen<br>•<br>SOEC<br>–<br>Capable of delivering 100%<br>efficiency with the addition of thermal<br>energy<br>•<br>SOFC<br>–<br>One fuel cell stack to perform<br>electrolysis and utilize the produced<br>Hydrogen to generate zero<br>-<br>carbon,<br>zero<br>-<br>emission power/electricity<br>•<br>Distributed Hydrogen platforms<br>–<br>no<br>pipeline or other transportation<br>infrastructure required<br>Industry Feedstock<br>Transportation<br>Applications capable of utilizing<br>FuelCell Energy technology<br>Heating<br>Power<br>Generation<br>•<br>Shipping<br>•<br>Aviation<br>•<br>Cars<br>•<br>Rail<br>•<br>Trucks<br>•<br>Buses<br>•<br>Steel<br>•<br>Chemicals<br>•<br>Refineries<br>H<br>2<br>Blue<br>Hydrogen<br>H<br>2<br>Green<br>Hydrogen<br>H<br>2<br>Green<br>Hydrogen<br>H<br>2<br>Grid<br>Hydrogen<br>Solid Oxide<br>Platform<br>Solid Oxide<br>Platform<br>Solid Oxide<br>Platform<br>Carbonate<br>Platform<br>Carbonate<br>Platform<br>Grid<br>Nuclear<br>Renewable<br>Biogas<br>Natural Gas<br>Carbon<br>Capture<br>Carbonate<br>Platform<br>&<br>H<br>2<br>Green<br>Hydrogen |
| --- |
| FuelCell Energy Q4 2021 Investor Presentation<br>Positioned to Serve the Evolving Energy Grid with Current & In<br>-<br>Development Platforms<br>24<br>A growing source of clean, reliable power for microgrid, Carbon Capture, electrolysis and Hydrogen Energy Storage<br>GENERATION<br>Nuclear Power Plant<br>& Solar Power<br>Thermal Power<br>Plant<br>Wind Power<br>Plant<br>TRANSMISSION<br>Hydrogen<br>Fuel<br>Cities and Offices<br>Smart<br>Houses<br>Industrial<br>Plant<br>•<br>Large Scale Carbon<br>Capture and Power<br>•<br>Long<br>-<br>Duration<br>Storage of Energy<br>•<br>Long<br>-<br>Duration<br>Storage of Energy<br>•<br>Electrolyis<br>•<br>Distributed Hydrogen<br>Combined Heat /<br>Cooling and Power<br>Carbon Capture<br>and Power<br>Hydrogen<br>and Power<br>Microgrid<br>Power<br>DISTRIBUTION<br>END USERS<br>H<br>2 |
| --- |