Manu Sial: That is correct. I think it’s a combination of project mix and change orders.
Ameet Thakkar: So, we should kind of think of that as a little bit of a kind of a one-off?
Manu Sial: Yes, look, remember, as we run off our legacy projects, some of them were signed way back in 2022, early 2023. You should expect the ASPs to kind of reflect what’s happening with the battery prices. But as we said, our margins continue to be intact and grow through 2024 and 2025.
Ameet Thakkar: Great, thank you. And then I think in your kind of cash flow guidance, you included the impact of deposits for the AESCS battery US cells. I was wondering if you could kind of give us a little bit of clarity on what the magnitude of that is and when that cash comes back to you.
Manu Sial: Yes, so what we’ve said is, I think it’s $150 million over a two-year period. I think it’s roughly half and half between 2024 and 2025. Half of it gets financed through customer deposits, and the other half we get financed through our own liquidity sources. And as you can see, we have ample of them. And then as the product starts coming through, we get it – a little bit as we – as AESC ships the product to us. So, you should start to see some of that deposit come back to us starting end of 2024, 2025, along with the supply of the cells.
Ameet Thakkar: Great. thanks for that and good luck, Manu.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Thomas Curran with Seaport Research Partners. Your line is now open.
Thomas Curran: Thanks for going into overtime here, guys. Manu, kudos on making so many positive contributions in such a short period of time, and best of luck on the private side of the auto parts world. Yes, we were quick to pounce on it. And then, Ahmed, congratulations on stepping into some big shoes. Look forward to collaborating with you. A follow up on how the nature of storage projects have been evolving. It was just touched on about how the size of them has soared over the last 18 to 24 months. We’ve also seen an uptrend in the average duration of systems being installed. Would you expect that ever longer duration trend to continue? And if so, what are some of the specifics of how you’re positioning Fluence to ensure that strategically and technologically and supply chain wise, you’re staying ahead of that trend?
Rebecca Boll: Yes, hi, Thomas. It’s Rebecca. So, what we see right now and what we’re developing and delivering from the product roadmap really is still on that two, four and six-hour duration system. So, kind of in the next 18 to 24 months, we’re going to deliver what we deliver, which is not yet the multi-day or longer duration than that. What we’re doing from a product roadmap perspective is, we’re examining what’s out there in the crystal ball of battery chemistries that allow for longer duration solutions. And we’re just starting now to engage with those suppliers and put prototyping efforts in place. So, when those things become more viable in the market, we will be ready.
Thomas Curran: Makes sense. Thanks for that, Rebecca. And then just looking to dissect the contracted backlog a bit further, was hoping you could share two percentages with us. First, what’s the portion of the current backlog that’s non-related parties? And then could you give us a rough estimate for how much of it represents mega projects and storage of the transmission asset combined?
Julian Nebreda: So, on the unrelated party, it’s around 75%. As we said, we want to – I want bring it to around 20. So, we’re kind of – it will be bumpy. So, it will go up and down because these projects are big. But I think we are – it’s been coming down and around 20 will be a number I feel comfortable with. So, today I think it’s around 75%. So, kind of in line with what – and our – if you looked at our revenue for the year, I think it was around 29. 29 with related parties, and 61 with, so – and it should tend to go towards the 75% revenue and then at some point get to 80% that I just talked about. And then you were saying on standalone, that was the second part of your question, the …
Thomas Curran: Just trying to get a sense either – if you want to break them out, that would be great, but even if you just want to look at them on a combined basis, the percentage of the contracted backlog that’s either a mega project or storage as transmission asset.
Julian Nebreda: Yes, I know. Difficult. Prefer not to go into that so at this stage, but we have a lot of flavors in that pipeline. That’s the way I’ll put it.
Thomas Curran: Yes, hence my curiosity.
Julian Nebreda: Yes. I know. But hey, I think that – I think it’s better to keep it with this view, and that allows us, all of us to work better as we move forward.
Thomas Curran: Fair enough. Thanks for taking my questions.
Julian Nebreda: Thanks for the question. And I think this is one of our successes, the ability to continue growing with none – our own unrelated party transactions that’s growing at a much higher rate than the 35% to 40%, as you can see from where our pipeline stands today and where our revenue stands today.
Operator: Thank you for your questions. This concludes today’s conference call. Thank you for participating. You may now disconnect everyone. Have a wonderful day.
