q2 fy2020 financial results & business update

FuelCell Energy August 2021 Company Presentation |

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


Purpose Statement

4

Enable The World

To Live A Life

Empowered By

Clean Energy


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


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


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


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


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


• 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


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



Electrolyis

Distributed Hydrogen

Combined Heat / Cooling and Power

Carbon Capture and Power

Hydrogen and Power

MicrogridPower

DISTRIBUTION END USERS

11


• 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


*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+


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


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



Carbonate Platform

Carbonate Platform

Grid

Nuclear

Renewable

Biogas

Natural Gas

Carbon Capture

Carbonate Platform

&

H2

Green

Hydrogen


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


(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


(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


Q2 2021 Update & Financial Performance


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


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


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.


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


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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q2 fy2020 financial results & business update

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