Ann: Fluence Business Update for Q4 2021, page-17

Just a very rough calculation on the contribution from IC vs SPS in 2021.
Revenue from IC about $60m with 15% gross margin yields $9m.
vs
SPS of $39.5m at 28% margin yields $11.8m

For 2022, IC would be another $60m from the backlog of $95m and we are now seeing $45m in SPS. We can do our maths on how fast, in terms of gross profitability, SPS is replacing CES.

Restructuring cost would weigh down the profitability in 2020 and prob 2021. I think it should be cleared by mid 2022. Further reduction in sales, admin and operating costs will get us to net profitability.

It is pleasant surprise to note that we have 25 plants in USA and the Caribbean now, with 11 in USA including 1 Nirobox.
My take is the funds will be more interested in the Recurring income side of the business because of its predictability of income stream. With our data generated from the China and Southeast Asian plants, it will assist the sale of WaaS. I very much would like to see more progress here soon.

In regards to the valuation matrices of EV/EBITDA and other methods, I think it is still difficult as $1m to $3m is too small and inconsistent for a rapidly growing company.

As for the calculations of EV, we still have to take away the $30m loan from Upwell from the roughly $60m cash, so the EV would still stands around US$40m mark.