Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-39982 ___________________________________ ___________________________________ (Exact name o ...

Energy Vault Holdings, Inc. (NYSE:NRGV) Q2 2023 Earnings Call Transcript August 8, 2023 8:30 AM ET Company Participants Laurence Alexander - Chief Marketing Officer Robert Piconi - Chairman & Chief Executive Officer Jan Kees van Gaalen - Chief Financial Officer Conference Call Participants Joseph Osha - Guggenheim Securities Thomas Boyes - TD Cowen Brian Dobson - Chardan Capital Markets Noel Parks - Tuohy Brothers Operator Good morning, and welcome to the Energy Vault Second Quarter 2023 Earnings Call. At t ...

Financial Performance - Energy Vault recorded Q1 2023 revenue of $11.4 million[6], primarily from BESS projects[55] - The company's Q1 2023 gross margin was over 20%[6] - The net loss for Q1 2023 was $(31.1) million[54] - Adjusted EBITDA for Q1 2023 was $(19.0) million[77] - Cash on hand at the end of Q1 2023 was $197 million[6] Commercial Activities - Energy Vault recorded new project awards of approximately $1 billion or 2.8 GWh, with ~$725 million for gravity EVx systems[6] - The total near-term commercial funnel increased by over 40% or 11 GWh quarter over quarter[6] - Total Signed Contracts & Awards are approximately 8 GWh, representing more than $3 billion of potential revenue[18] - Booked Orders are 1,635 MWh, representing ~$540 million[17] Project Updates - The Rudong, China GESS project is on track for mechanical completion and start of commissioning in 2Q23, providing 25 MW / 100 MWh[6, 20]

Energy Vault Holdings, Inc. (NYSE:NRGV) Q1 2023 Earnings Conference Call May 9, 2023 4:30 PM ET Company Participants Laurence Alexander - Chief Marketing Officer Robert Piconi - Chairman & Chief Executive Officer Jan Kees van Gaalen - Chief Financial Officer Conference Call Participants Hilary Cauley - Guggenheim Securities Christopher Ellinghaus - Siebert Williams Shank & Co. Greg Pendy - Chardan Thomas Boyes - TD Cowen Noel Parks - Tuohy Brothers Operator Greetings and welcome to Energy Vault First Quart ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-39982 ___________________________________ ENERGY VAULT HOLDINGS, INC. ____________________ ...

Company Operations and Financial Performance - The company has a limited operating history and has only built one GESS, the EV1 Tower in Lugano, which was decommissioned in September 2022[75]. - The company expects to incur significant expenses and continuing losses for the foreseeable future, with no assurance of achieving profitability[73]. - The company reported revenue of $145,877,000 for the year ended December 31, 2022, compared to no revenue in 2021[381]. - Operating expenses totaled $145,080,000 in 2022, with significant increases in research and development costs to $50,058,000 from $7,912,000 in 2021[381]. - The net loss for the year was $78,299,000, resulting in a net loss per share of $0.64, compared to a net loss of $31,338,000 and a loss per share of $2.45 in 2021[381]. - Total current assets increased to $390,067,000 in 2022 from $110,663,000 in 2021, driven by cash and cash equivalents rising to $203,037,000[380]. - Total liabilities rose to $129,000,000 in 2022 from $11,251,000 in 2021, indicating a significant increase in financial obligations[380]. - The company has a total stockholders' equity of $287,713,000 in 2022, compared to a deficit of $68,666,000 in 2021[380]. - The balance of accumulated deficit as of December 31, 2022, was $147,265,000, showing a deterioration from the previous year's deficit[384]. - The company incurred issuance costs of $1,628,000 related to the Series C preferred stock, impacting the net proceeds from the issuance[384]. Market and Competitive Landscape - The company’s future growth is dependent on rising demand for clean electric power solutions and the adoption of digital software applications[76]. - The company faces intense competition from larger entities with more resources, which could affect its market share and operating results[131]. - Competition in energy storage technology is expected to intensify due to regulatory pushes for lower-carbon energy sources and advancements by competitors, which may adversely affect sales and gross margins[133]. - The energy storage market is driven by the installed capacity of renewable electricity generation, and any relaxation of government requirements could negatively impact market demand[128]. - The company is exploring alternative use cases for energy storage systems in energy-intensive industries, but there is no assurance these opportunities will be commercially viable[100]. Risks and Challenges - The company faces risks associated with construction, cost overruns, and delays, which could adversely affect its operations[78]. - The company has identified a material weakness in its internal control over financial reporting, which could impair the accuracy of its financial statements[73]. - The company’s projections for revenues and profitability are subject to significant risks and uncertainties, making actual results potentially different from expectations[79]. - The company faces risks related to climate change, which could disrupt operations and require additional expenditures[148]. - The company is exposed to international operational risks, including compliance with diverse regulations and potential currency fluctuations[123]. - The company faces potential liabilities for environmental damage, which could significantly impact its financial condition and reputation[210]. - The company may incur significant costs related to the maintenance and protection of its intellectual property rights, which could impact its financial condition[182]. - Cyber-attacks and security breaches pose a risk to the company's operations, potentially harming its reputation and leading to financial losses[190]. Customer and Revenue Dependence - The company relies on a limited number of customers for the majority of its revenue, and the loss of any significant customer could substantially reduce revenue[81]. - The lengthy sales cycle for energy storage systems ranges from 18 to 36 months for EVx systems and 9 to 18 months for BESSs, increasing operational risks[165]. - The company’s energy storage systems have significant upfront costs, and customer financing is crucial for deployment[87]. - Credit risk is present as the company relies on significant customers for revenue, and any default could negatively impact financial performance[368]. Regulatory and Compliance Issues - The company is subject to various government incentives, such as rebates and tax credits, which are crucial for maintaining revenue levels[208]. - The Inflation Reduction Act (IRA) passed in August 2022 is expected to provide government incentives that will benefit the company's operations[209]. - Compliance with environmental laws and regulations requires significant resources and could delay operational capabilities[212]. - Changes in regulatory enforcement policies may negatively impact the company's profitability and ability to compete[221]. - The company is subject to various licensing and operational requirements that incur substantial compliance costs[222]. Internal Management and Governance - The company is highly dependent on key personnel, including the CEO and CTO, and failure to retain them could disrupt operations and growth[137]. - As of December 31, 2022, executive officers, directors, and their affiliates beneficially own approximately 38.4% of the outstanding common stock, allowing them significant control over corporate decisions[230]. - The company expects to incur significant increased expenses and administrative burdens as a public company, which could negatively impact its financial condition and results of operations[236]. - Activist stockholders may attempt to effect changes within the company, potentially disrupting operations and diverting management's attention from strategic plans[246]. Financial Health and Capital Structure - The company may need to raise additional capital to fund ongoing costs, including research and development, which could be dilutive to stockholders[161]. - Market conditions and disruptions in capital markets could adversely affect the company’s cash resources and access to additional capital[162]. - The issuance of additional shares or other equity securities could dilute existing ownership interests and may depress the market price of the company's common stock[240]. - The company has approximately $3.4 million, $21.9 million, and $37.3 million of federal, state, and foreign net operating loss carryforwards, respectively[173]. - The company converted 85,741 shares of convertible preferred stock into common stock during the reverse recapitalization, resulting in an increase of common stock by $182,700,000[384]. - Stock-based compensation for the year ended December 31, 2022, amounted to $41,058,000, indicating ongoing investment in employee incentives[384].

Financial Data and Key Metrics Changes - Energy Vault reported total revenue of approximately $146 million for the fiscal year 2022, with $100 million generated in Q4 alone, reflecting strong execution and customer focus [6][52] - The gross margin for Q4 2022 was approximately 16%, with full-year gross profit reaching $59.3 million [52][81] - Adjusted EBITDA for Q4 was negative $11.2 million, leading to a total adjusted EBITDA of negative $11.4 million for the year [93][108] Business Line Data and Key Metrics Changes - Revenue from battery storage projects in Q4 was $84.5 million, while EVx licensing deals contributed $15.6 million [91] - The company has a current backlog exceeding five gigawatt hours and approximately $2 billion in awarded contracts [51] - The revenue forecast for 2023 is projected to be between $325 million and $425 million, indicating a potential doubling year-over-year [107][108] Market Data and Key Metrics Changes - The company is focusing on utility grid uses and industrial/micro-grid applications, with a significant demand for long-duration energy storage solutions as renewables become a larger part of power generation [28][67] - The proposal pipeline grew more than 50% quarter-over-quarter, reflecting robust energy storage demand [75] Company Strategy and Development Direction - Energy Vault aims to expand relationships with utilities as their long-duration storage needs emerge, particularly as fossil fuel assets are retired [66] - The company is leveraging the Inflation Reduction Act (IRA) to enhance the economics of its EVx systems, with potential benefits not yet included in current forecasts [47][71] - The strategy includes maintaining flat operating expenses while ramping revenue, allowing for flexibility in investment opportunities [33][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy storage industry's growth, particularly for long-duration solutions, and emphasized the importance of executing customer needs [16][35] - The company is preparing for potential macroeconomic challenges, including inflation and supply chain issues, while remaining well-positioned due to strong liquidity and no debt [62][63] Other Important Information - The company has retained renowned engineer William Baker to assist in optimizing project development and permitting processes [84] - Energy Vault's unique hardware architectures and software design are recognized by customers, enhancing trust in delivering large-scale projects [49] Q&A Session All Questions and Answers Question: Can you talk about the sourcing strategy for battery storage hardware? - The sourcing strategy varies based on customer requirements and may involve working with customer-chosen suppliers or integrating third-party solutions [117][128] Question: How are the licensing agreements structured? - Licensing agreements typically include a license component tied to deployment rights, with royalties based on project revenue [123][124] Question: What is the company's approach to project execution in 2023? - The primary focus for 2023 is on executing signed projects on time while navigating supply chain and permitting challenges [76][119]

Energy Vault has provided a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure in slides 18 and 20 © 2023 ENERGY VAULT HOLDINGS INC. - ALL RIGHTS RESERVED Enabling a Renewable World 14 • Q4 Revenue was driven by $84.5M from building and transferring of energy storage products and $15.6M from the licensing of the Company's intellectual property; Q3 Revenue was driven by $1.2 million from building and transferring of energy storage products. ◦ Sales & Marketing ( ...

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $1.7 million, primarily from battery storage projects, with $1.2 million from Jupiter and $0.5 million from construction support services to Atlas Renewable [34] - Gross profit for Q3 2022 was $71,000, reflecting the mix of revenue sources [34] - Total operating expenses for Q3 2022 were $36.3 million, up from $22.4 million in Q2 2022, driven by increased stock-based compensation and depreciation [35] - Adjusted EBITDA for Q3 2022 was a negative $17.2 million, compared to a negative $14.2 million in Q2 2022 [37] - As of September 30, 2022, the company had approximately $274.7 million in cash and equivalents, positioning it well for growth objectives [38] Business Line Data and Key Metrics Changes - The company converted nearly 500 megawatt hours of prior project awards to signed booked orders and executed over 2 gigawatt hours of new project awards in the quarter [11] - Total signed contracts and customer project awards reached 4.8 gigawatt hours, representing approximately $2 billion of potential revenue [11] - The company announced a 275-megawatt hour project with Wellhead Electric and a 220-megawatt hour project with Jupiter Power, with engineering procurement construction already begun [19] Market Data and Key Metrics Changes - The company is expanding into the European market and has made significant inroads in Australia and China, with a focus on energy storage technology [18][22] - The energy storage market is expected to grow over 20% annually for the next decade, with Energy Vault positioned to be a significant leader [16] - The introduction of green hydrogen as a third pillar of the storage technology portfolio is expected to address market needs for integrated solutions [17] Company Strategy and Development Direction - The company focuses on large-scale projects and technology diversification to meet customer needs, emphasizing a solutions-based approach [12][17] - The strategy includes leveraging software capabilities for energy management and system integration, enhancing flexibility for customers [15] - The company aims to execute on its 2022 regional priorities for deployment in the US, Australia, and China, with plans for further geographic expansion [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2022 revenue guidance of $75 million to $100 million and adjusted EBITDA guidance of a loss of $10 million to a profit of $3 million [40] - The company anticipates continued commercial momentum and strong visibility into project progress, which supports its revenue outlook [40] - Management highlighted the importance of execution and operational excellence as key focuses for the upcoming quarters [28] Other Important Information - The company has made key hires to support project management and execution efforts, including a new CFO and other leadership roles [27] - The company is committed to meeting or exceeding investor expectations and maintaining transparency regarding its growth trajectory [29] Q&A Session Summary Question: Details on the two-gigawatt hours of shortlisted projects - Management indicated a strong conversion rate from shortlisted to awarded projects, emphasizing a focus on large projects to optimize technical differentiation [44] Question: Margin profile for the business next year - Management expects initial project margins to be in the mid to high single-digit range, with additional revenue streams from long-term service agreements and software [46] Question: Battery supply chain strategy and contracts - The company secures battery supply in advance of project awards, ensuring no risk in scheduling and material availability [48] Question: Accounting for the two-gigawatt deal with Atlas - The royalty stream from the Atlas deal is set at 5% of total project revenue, with further details expected as the partnership develops [55][56] Question: 2023 revenue outlook and project delays - Management expects revenue to ramp up throughout 2023, with Q1 being the lowest quarter, and has built contingencies into their plans to manage execution risks [61]

ENERGY VAULT l Preeminent Energy Storage Company INVESTOR PRESENTATION l Third Quarter 2022 © 2022 ENERGY VAULT HOLDINGS INC. - ALL RIGHTS RESERVED Disclaimer Forward-Looking Statements This presentation includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our busi ...